Unsecured lending remains the primary engine of growth. Cards remains in significant growth and Personal loans continue to perform strongly by both volume and value, reflecting ongoing demand for purchases, cost management and debt restructuring.
Secured lending is also positive with Auto finance showing a confident start to 2026, with vehicle demand holding in despite broader affordability pressures.
Credit card balances continue to rise, driven by new lending, increased active usage and growing diversity in product features. Engagement remains uneven however, with dormancy still prevalent across a portion of the base. Minimum payment behaviour is increasing, alongside greater use of promotional rates, highlighting emerging behavioural shifts as consumers leverage features and offers.
On the supply side, lenders have remained firmly in growth mode despite the growing uncertainty. Eligibility levels are at record highs, reflecting continued appetite to lend, expansive panel coverage and strong competitive dynamics. While some high street banks have implemented modest increases in loan pricing, these changes have not deterred engagement. Conversion rates have strengthened relative to January, suggesting consumers are actively seeking to secure competitive rates amid uncertainty. Efforts to transition from representative rates toward real rate transparency continue, supporting better consumer outcomes and clearer product comparisons.
In contrast, mortgage market confidence has softened. Rising rates on fixed term deals, house price volatility and expectations of further interest rate increases are weighing on both purchase and remortgage demand. Broader macroeconomic commentary, including warnings over future mortgage payment shock, is beginning to influence sentiment.
Despite pressures being felt by consumers, arrears across consumer base remain broadly stable, indicating continued affordability and resilience at this stage.
Early pressure is starting to emerge from higher risk lending originated in 2025, though this remains aligned with expectations and is concentrated within lower value exposures.
Overall, demand for credit remains robust, but behaviour is becoming more selective as consumers hold a wider mix of products and deploy them for specific needs.
Looking ahead, 2026 continues to present growth opportunities, tempered by emerging headwinds and geo-political uncertainty. Success will depend on precise customer targeting, disciplined risk management and close monitoring of behavioural shifts as confidence becomes more fragile.
Lender appetite remains strong, with record eligibility supporting consumer choice
Resilience persists, confidence is shaped by economic headwinds
Director of Insight
Experian
businessuk@experian.com
Key UK economic & consumer credit metrics
Delphi score
Disposable income levels stabilise as inflationary pressures have eased
Indebtedness
Although above 2019 levels, some improvement in levels of consumer indebtedness observed at the start of 2026
Public data
A cautionary trend to keep a watch on as Insolvencies and Judgements have started to steadily increase since mid-2025
Key UK Consumer credit metrics
(Asset Finance, Credit Cards/Revolving Credit, Loans, and Mortgages)
| UK Insight | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 (Current month) | Variance (%) | Absolute variance |
|---|
| UK consumer Delphi score | 100 | 100.6 | 101.4 | 101 | 100.7 | 100.6 | 99.9 | 100.2 | 0.3% | 0.3 |
|---|
| UK consumer CII | 100 | 99 | 93.4 | 96.7 | 101.2 | 106.7 | 111.3 | 110.1 | -1.1% | -1.2 |
|---|
| Average non-mortgage debt | 100 | 92.8 | 90.7 | 95.1 | 99.7 | 103.3 | 107.2 | 106.3 | -0.8% | -0.9 |
|---|
| Average mortgage debt | 100 | 103 | 107.6 | 112.7 | 115.7 | 118.5 | 123 | 124.2 | 1% | 1.2 |
|---|
| Average credit card balances | 100 | 93.8 | 87.6 | 89.5 | 94.2 | 94.6 | 95.9 | 95.7 | -0.2% | -0.2 |
|---|
| Average credit card utilisation rate | 100 | 96 | 90.9 | 88.8 | 92.4 | 92.1 | 92.7 | 92 | -0.7% | -0.6 |
|---|
| Total credit card balances | 100 | 83.3 | 81.4 | 87.8 | 97.9 | 103.7 | 113.1 | 114 | 0.7% | 0.8 |
|---|
| Proportion of current accounts overdrawn | 100 | 99.5 | 96.8 | 102.6 | 102.3 | 95.5 | 94 | 88.8 | -5.5% | -5.2 |
|---|
| Average overdraft utilisation rate | 100 | 103.2 | 102.3 | 100.8 | 108 | 103.5 | 102.4 | 97.2 | -5.2% | -5.3 |
|---|
| Total balances | 100 | 102.6 | 108 | 111.8 | 111.7 | 112.8 | 116.3 | 117.3 | 0.8% | 1 |
|---|
| Average auto debt | 100 | 100.5 | 103.4 | 112.1 | 120.4 | 123.9 | 127.8 | 127.1 | -0.5% | -0.7 |
|---|
| Total auto balances | 100 | 98.3 | 100.4 | 108 | 114.3 | 120.4 | 124.4 | 124.2 | -0.1% | -0.2 |
|---|
| 2+ Rate # AF | 100 | 137 | 156 | 152.4 | 171.9 | 182 | 171.8 | 170.5 | -0.7% | -1.2 |
|---|
| 2+ Rate # CC | 100 | 76.1 | 78.6 | 92.9 | 101.4 | 100.9 | 104.3 | 110.9 | 6.4% | 6.6 |
|---|
| 2+ Rate # MG | 100 | 104.9 | 96.1 | 85.9 | 111 | 114.3 | 103.7 | 102.6 | -1.1% | -1.1 |
|---|
| 2+ Rate # PL | 100 | 105.1 | 84.3 | 88.3 | 78.9 | 65.5 | 66.3 | 68.4 | 3.2% | 2.1 |
|---|
All data points are indexed against an end of 2019 position and thus reflect movements from this point.
The view from Experian
Average consumer quality has slowly begun to rise once, offsetting the long-term downward trend, with levels of consumer indebtedness also showing signs of stabilising.
Average Mortgage Debt continues to climb as house price inflation, although slowing is reflected in increased mortgage debt.
Delinquency rates have worsened in all core markets except Mortgages. This is anticipated in unsecured lending through Cards and Loans due to the rising inclusion of higher risk customers.
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For a deeper dive into the latest UK consumer macroeconomic and credit trends