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UK Lenders Face Rising Defaults Amid New Lending Surge

10/22/2025

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Summary

Story summary

In early 2025, default rates among UK alternative lenders exceeded 20%, up from 15.2% in December 2024.
Traditional banks reduced defaulted loans by 10–20% during the same period.
New lending rose by a third to £22.3 billion, driven by banks and development financing.
Debt funds now provide 62% of speculative financing, while high default rates raise concerns.

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Story summary

In early 2025, default rates among UK alternative lenders exceeded 20%, up from 15.2% in December 2024.
Traditional banks reduced defaulted loans by 10–20% during the same period.
New lending rose by a third to £22.3 billion, driven by banks and development financing.
Debt funds now provide 62% of speculative financing, while high default rates raise concerns.