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.”

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 almost 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 referred to as main high street banks reflects more than two-thirds of all UK lending and deposit activity provided by all banks and building societies and is indicative of household behaviour.
Attachments
Household Finance Update – September 2018