Total sterling lending to the UK private sector in August showed a net underlying increase of GBP15 billion to GBP1,254 billion, an increase of 1.2%. This was slightly higher than the previous month’s underlying rise of GBP14.3 billion, though below the average of GBP15.4 billion over the previous six months.
Net mortgage lending rose by an underlying GBP6.2 billion. This was GBP0.4 billion higher than the GBP5.8 billion rise in July and well above the monthly average of +GBP5.4 billion over the previous six months.
However, unsecured personal lending fell by an underlying GBP0.2 billion in August, reducing the average rise to GBP0.1 billion over the previous six months. Within this category loans and overdrafts rose by GBP0.2 billion, while underlying credit card borrowing fell by GBP0.4 billion.
David Dooks, BBA director of statistics, commented: The draw-down of house purchase loans in particular has driven net mortgage lending higher of late and August’s increase set a new monthly record. This buoyancy in mortgage lending is contrasted by the trend in consumer credit, where credit card lending has shown a further decline (the fourth month in a row) while lending on personal loans and overdrafts was weak.
