Loans To Individuals Increased In September

Net lending to individuals increased by £0.4 billion in September, says the Bank of England in its latest report.

Consumers seemed more willing to borrow in September when compared to previous months as net lending – the total amount borrowed minus total repayments – increased by £0.4 billion.

Whilst total mortgage borrowing for new purchases remained static, it was increased credit card borrowing and other forms of consumer credit such as secured loans, that accounted for most of the increase seen in September.

Credit card lending saw a £0.2 billion increase and other loans and advances accounted for a further £0.1 billion.

Interestingly, approvals for remortgages were also higher in September than in August. This might indicate slightly better availability of remortgaging products in the market.

It could also point to a greater focus on improving the home rather than householders wishing to climb the property ladder as the property market weakens.