Key data highlights:

  • Gross mortgage lending in April is estimated to have been £20.4bn, 13.3 per cent higher than a year earlier. The number of total mortgage approvals has also risen and is 11 per cent higher, this increase is primarily driven by remortagage approvals which were almost 30 per cent higher than a year earlier.
  • Card spending was 9.8 per cent higher than a year earlier. Outstanding levels of credit card borrowing grew by 5.2 per cent over the year, down from an annual growth rate of 5.7 per cent in March.
  • Growth in personal deposits has been 1.4 per cent over the year, slightly down on the previous six month average of 2 per cent but still up compared to the same period last year, with consumers opting for instant access accounts over those with notice. ISA cash deposits across the high street banks saw a slight increase on the previous month to coincide with the end of the tax year.

Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance said:

“April saw steady growth in mortgage lending and approvals, following a slowdown in activity the previous month. This was driven by strong remortgaging levels, as borrowers locked into attractive deals amid expectations of a base rate rise.

“Card spending has strengthened following a subdued March. Despite the recent fall in inflation and the squeeze on household incomes starting to show some signs of easing, consumer confidence remains relatively low.”

Notes to Editors

  1. 1 For more information please call the UK Finance Press Office on 020 7416 6750 or e-mail press@ukfinance.org.uk.
  2. UK Finance is the trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
  3. Data in this update reflect lending and deposit activity conducted by UK households with the main high street banks. This coverage reflects more than two-thirds of UK household finance provided by all banks and building societies.
Attachments
Household Finance Update – April 2018