Key data highlights:

  • Estimated gross mortgage lending for the total market in June is £23.5bn, 2.1 per cent higher than a year earlier.
  • The number of mortgage approvals by the main high street banks in June fell by 2.1 per cent compared to the same month a year earlier. Within this only remortgaging approvals increased and were 3.4 per cent higher than for the same period a year earlier, this was offset by the 4.7 per cent fall in house purchase approvals and 4.3 per cent fall in other secured borrowing.
  • Credit card spending was 4.7 per cent higher than a year earlier, with outstanding levels of card borrowing having grown by 5.6 per cent over the year. Outstanding overdraft borrowing was 5.8 per cent lower compared to the same time last year.
  • Personal deposits grew by 1.3 per cent in the last 12 months. Deposits held in instant access accounts were 4.2 per cent higher than a year earlier.

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

“Lending to households has continued to grow modestly in line with recent trends, with increased borrowing on credit cards mirrored by a fall in overdraft borrowing.

“Card spending saw relatively strong growth year on year, with retail sales buoyed by the sunshine and recent sporting events.

“Meanwhile growth in mortgage lending continues to be driven by remortgaging, as borrowers take advantage of attractive deals ahead of an anticipated Bank rate rise.”

Notes to Editors

  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 – June 2018