Mortgage borrowing “remains steady”

UK Finance has reported that gross mortgage lending across the residential market in November 2018 was £23.1bn, 2.0% lower than November 2017.

The number of mortgages approved by the main high street banks in November was 10.6%t lower than November 2017; approvals for house purchase were 1.2% lower, remortgage approvals were 20.3% lower and approvals for other secured borrowing were 12.2% lower.

The £11.3bn of credit card spending in November was 7.5% higher than November 2017. Over the past 12 months, the outstanding level of credit card borrowing grew by 5.3%. Personal borrowing through loans and overdrafts grew by 2.5% in the year to November.

Personal deposits in total grew by 0.7% over the past 12 months. Deposits held in instant access accounts were 3.1% higher than last November.

Eric Leenders, managing director, personal finance at UK Finance, said: “Overall mortgage borrowing across the residential property market remains stable and the trend in households’ cash savings remains steady.

“Total credit card spending increased in November, while borrowing growth remains constant compared with November last year. The increase in spending, which is largely offset by cardholder repayments, reflects the growing use of credit cards as a preferred form of payment, particularly in travel, as consumers take advantage of stronger customer protection and value-added benefits.”

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