Lending to individuals (Tables A-E)
Consumer credit (Tables B and C)
Annual growth of consumer borrowing, excluding mortgages, remained stable in June, at 8.8% (Chart 1).1 Credit cards have been accounting for an increasing share of consumer credit growth over the past couple of years and the growth rate of credit card lending has exceeded that of other loans and advances (which includes personal loans, overdrafts and car finance) since January 2018. Annual credit card growth was 9.5% in June, whilst the growth rate of other loans and advances was 8.5%.
The net amount of credit extended to borrowers each month can give us a better picture of recent developments, as the annual growth rate can be a lagging indicator. Net consumer credit lending was unchanged at £1.6 billion in June, a little above the average of the past year. The contributions from credit card lending and other loans and advances were also unchanged, at £1.0 billion and £0.6 billion respectively.
Chart 1: Consumer credit
Mortgage lending (Tables D and E)
In June, the annual growth rate for mortgage lending remained unchanged at 3.2%, and has now been around 3% since late 2016. Although this is above the growth rate between 2009 and 2013, it remains modest compared to the pre-crisis period. In value terms, households borrowed an extra £3.9 billion secured against their homes in June, which slightly exceeds the average of the past year.
The number of mortgages approved for house purchase increased a little in June, to 66,000, and were close to their average since late 2013. This data gives us an indication of how much new mortgage lending we might expect to see in coming months. The number of approvals for remortgaging fell 7.3% in June to 48,000. Despite this fall, remortgaging approvals remain broadly in line with the average over 2018 so far.