Key data highlights:

• Gross mortgage lending across the residential market in September was £21.5bn, some 1.2 per cent lower than last September.
• The number of mortgages approved by the main high street banks in September was 9.1 per cent lower than last September; approvals for house purchase were 10.1 per cent lower, remortgage approvals were 7.4 per cent lower and approvals for other secured borrowing were 9.8 per cent lower.
• The £10.0bn of credit card spending in September was 3.4 per cent higher than last September. Over the past twelve months, the outstanding level of credit card borrowing grew by 5.7 per cent. Personal borrowing through loans and overdrafts grew by 2.3 per cent in the year to September, although it has seen a net contraction in the last two months.
• Personal deposits in total grew by 0.9 per cent over the past twelve months. A consumer preference to hold cash for immediate use is reflected in instant access deposit levels being 3.1 per cent higher than last September.

Commenting on the data, Eric Leenders, Managing Director, 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.