Lending to individuals (Tables A-E)
Consumer credit (Tables B and C):
The extra amount consumers have borrowed each month to buy goods and services has slowed in the second half of 2018. Since July, the average monthly flow of consumer credit has been £0.9 billion, compared with £1.5 billion between January 2016 and June 2018. In November, the total net flow was £0.9 billion, with net credit card borrowing of £0.4 billion, and borrowing for other loans and advances of £0.5 billion.
The annual growth rate of consumer credit has been slowing gradually since the end of 2016 (Chart 1). It slowed further in November, to 7.1%, reflecting the weaker flows of new lending. This was the lowest since March 2015, and well below the peak of 10.9% in November 2016. The annual growth rate of other loans and advances was 6.6% in November, the lowest since June 2014. Growth in credit card lending has been fairly stable, but also slowed to 7.9% in November.
Chart 1: Consumer credit growth
Mortgage lending (Tables D and E):
Mortgage market activity has been broadly stable since 2016, looking through month to month changes, and this has continued into November. Households borrowed an extra £3.5 billion secured against their homes in November, slightly lower than the £4.1 billion in October but broadly in line with the average since 2016 of £3.6 billion. The annual growth rate of mortgage lending ticked down to 3.2% in November. It has been around 3% since late 2016, and remains modest compared to the pre-crisis period. The number of mortgages approved for house purchase - which lead to future mortgage lending - fell slightly, to 63,700 in November. The number of approvals for remortgaging was broadly unchanged on the month at 48,600.
Chart 2: Mortgage approvals