BBA: UK lending rises but credit card borrowing subdued

The latest figures from the British Banker’s Association (BBA) reveal a rise in lending for September 2005 but credit card borrowing remains subdued.

Unsecured lending experienced growth totalling £0.5 billion which was lower than growth for August but in line with the average of the last six months.

Loans and overdrafts rose by £0.4 billion, which falls in with the expected trend, while credit card borrowing rose by £0.1 billion, showing no significant improvement on recent disappointing credit card spending figures.

Mortgage lending enjoyed a rise of £5 billion for September, higher than the average of the last six months and surpassing the August rise of £4.4 billion.

David Dooks, BBA director of statistics, said: “With recent months’ higher approval volumes working their way through to lending, September saw a stronger figure for mortgage lending than of late, maintaining the very stable trend we have seen throughout this year.

“Credit card lending continues to be very subdued, consistent with the current picture of weak consumer spending”

© Adfero Ltd

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