UK credit card borrowing increases
Published On 18 October 2007
Credit card borrowing in the UK increased in September, new figures show.According to the British Bankers' Association (BBA), underlying credit card borrowing increased by £100 million in the month.
Similarly, loans and overdrafts also rose by £100 million.
In total, sterling lending to the UK private sector increased by £19.8 billion over the period, more than average over the last six months.
"Slightly lower mortgage lending in September followed on from fewer loan approvals in August, but the recent trend is little changed and consumer credit, despite a rare - for recent times - rise in card borrowing, remained very subdued," commented David Dooks, BBA director of statistics.
Figures from the Council of Mortgage Lenders (CML) recently revealed that gross mortgage lending dropped 12 per cent in September.
Commenting on the data, CML director general Michael Coogan said: "We have been expecting a slowdown in monthly lending levels in line with interest rate rises.
"In the coming months, we expect to see monthly lending levels dip below their 2006 levels for the first time this year as rate effects are exacerbated by the recent liquidity problems in the mortgage market."
