Bank of England statistical release lending to individuals January 2007

Total net borrowing by individuals saw an overall drop in January compared to recent months, the Bank of England has said.

Consumers borrowed £10.6 billion last month compared to £11.3 billion in December; this was also below the previous six-month average.

Mortgage borrowing for the month tied in with the average for the preceding six months, although again more mortgage landing was conducted in December than in the first month of this year.

Of the various mortgages granted, 120,000 were to buy a home while a further 104,000 were in the form of remortgage lending.

Credit card borrowing maintained approximately the same level in January, while other forms of personal lending amounted to around £1 billion.

Borrowers may well be waiting to see if the base rate of interest is going to be lowered when the Bank of England’s monetary policy committee meets next week.

Analysts seem reluctant to make definite predictions for the outcome of the meeting; Simon Ward of fund managers New Star says the vote will be “on a knife edge.”

© Adfero Ltd

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