UK bank lending growth expected to hit three-year low in 2027, says EY

Prolonged economic uncertainty means changing customer needs, EY said (Gareth Fuller/PA Archive) - (PA Archive)

Overall growth in UK bank lending to households and businesses is set to slow to a three-year low in 2027, as greater caution and economic pressures weaken borrowing demand, according to a forecast.

The EY UK Bank Lending Outlook predicts a marked slowdown in growth in total bank lending, from 3.6% in 2025 to 2.9% this year, and then reaching a three-year low of 2.2% in 2027, before edging up to 2.4% in 2028.