UK Finance has revealed that gross mortgage lending across the residential market in September was £21.5bn, some 1.2% lower than last September and the lowest level since February this year.
The number of mortgages approved by the main high street banks in September was 9.1% lower than last September; approvals for house purchase were 10.1% lower, remortgage approvals were 7.4% lower and approvals for other secured borrowing were 9.8% lower.
The £10.0bn of credit card spending in September was 3.4% higher than last September. Over the past twelve months, the outstanding level of credit card borrowing grew by 5.7%. Personal borrowing through loans and overdrafts grew by 2.3% in the year to September.
Personal deposits in total grew by 0.9% over the past twelve months. Instant access deposit levels were 3.1% higher than last September.
Eric Leenders, managing director of personal finance at UK Finance, said: “The mortgage market softened slightly in September, following strong remortgaging activity in the months preceding the recent base rate rise.
“There has been modest year-on-year growth in card spending. However, borrowing through personal loans and overdrafts has contracted slightly in recent months, suggesting demand for unsecured household finance is becoming more subdued.
“Consumers are increasingly choosing to keep cash close to hand, with deposits held in instant access accounts showing steady growth.”
Vikki Jefferies, proposition director at PRIMIS and PTFS, added:”The subdued market for property sales is offset by a vibrant remortgage market as homeowners look to bring certainty to their financial outgoings with Brexit looming and August’s rate rise fresh in the memory.
“The rising household debt burden is a concern, but it will remain a manageable one for most families as long as interest rates remain low. When levels of uncertainty are heightened, customers turn to their financial advisers to get a sense of how to successfully navigate the financial situation, which will feed through into increasing applications for remortgaging and protection products, especially income protection.”