UK Finance has reported that gross mortgage lending across the residential market in June 2019 was £21.9 billion, some 4.0% lower than the same month in 2018.
The number of mortgages for home purchase approved by the main high street banks in June 2019 was 2.9% higher than in the same month in 2018. Remortgage approvals were 1.4% lower and approvals for other secured borrowing were 5.3% lower than the same month a year earlier.
Steve Seal, director of sales and marketing, Bluestone Mortgages, said:“Today’s figures aren’t showing any major jumps in terms of gross lending volumes. Nonetheless, government schemes to help first-time buyers and attractive remortgage deals continue to appeal to borrowers. What’s also promising is that consumers are borrowing sensibly on their credit cards and through other personal loans.
“What’s worrying, though, is a large proportion of consumers are still carrying debt. This leaves many unsure of where to turn to next if they’ve been rejected from high-street financing. Whilst affordable and sensible lending may initially seem at arm’s length, there’s a whole host of alternative options out there for borrowers with complex finances, and advisers can direct those that fall outside mainstream criteria to the best lending solution for their needs.”
The £10.5 billion of credit card spending in June 2019 was 1.1% higher than the same month in 2018. The outstanding level of credit card borrowing grew by 4.0% in the 12 months to June. Repayments have remained in line with credit card spending, showing that consumers are managing their finances effectively overall.
Personal borrowing through loans in June 2019 was 2.4% lower than the same month a year ago though lending through overdrafts in June 2019 was 1.3% higher compared to the same month last year.
Deposits held in instant access accounts were 2.5% higher than in the same month a year ago, reflecting consumers’ preference to keep cash close to hand amid ongoing economic uncertainty. ISA deposits were 0.3% higher compared to the same month last year.