The Bank of England has reported that in May, total lending to individuals increased by £3.1bn, compared to the average monthly increase of £2.8bn over the previous six months.
The three-month annualised and 12-month growth rates were 2.6% and 2.4% respectively.
Consumer credit increased by £1bn in May, in line with the average monthly increase over the previous six months. The three-month annualised and 12-month growth rates were 8.5% and 7.2% respectively.
Danny Waters, CEO of Enterprise Finance, said: “Peoples’ increasing confidence in their future prospects is translating into a renewed appetite for borrowing. While the economic forecast looked uncertain some spending was postponed – now the picture has become clearer, people are forging ahead with their spending plans.
“We are experiencing strong demand for secured loans as homeowners look to free up funds for a variety of projects, be it home improvements or big ticket purchases they now feel less conscious about purchasing than they might have done as we exited the recession. Our Secured Loan Index reported demand for secured loans hitting a five-year high in March and there has been no let-up in consumer appetite since.”