0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Credit Strategy sections
Topics ▼
Topics ▼
Sections ▼
Shop for events
Shop for events
Search

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

BoE: Slowdown in growth of consumer credit

Figures released by the Bank of England show that consumer credit increased by £0.9bn in October, similar to recent months but “below much of the period since 2016”.


Calum   Fuller

Share on LinkedInShare on Twitter
Calum   Fuller
Share on LinkedInShare on Twitter

Net credit card borrowing was slightly lower than September, at around £400m, while borrowing for other loans and advances was slightly higher at approximately £500m. Since July, the net flow of consumer credit has averaged £1bn, somewhat less than an average flow of £1.5bn since early 2016.

 

The annual growth rate of consumer credit slowed further in October, to 7.5 percent, reflecting the weaker lending flows seen in recent months. This was the lowest since May 2015, and well below the peak of 10.9 percent in November 2016.

 

Mortgage market activity was broadly stable in October. The flow of mortgage lending increased to £4.1bn in October and mortgage approvals for house purchase were 67,000.

 

George Robbins, director of financial services at TransUnion, said: “While consumer credit is lower than we’ve seen in much of the period over the past couple of years, it is likely to increase as we head toward the Christmas season, with all the additional spending that brings – and the bigger picture remains one of high consumer debt in the UK.

 

“With UK Finance revealing that more consumers than ever are using their credit cards for everyday spending, rather than just one-off purchases, the Christmas rush is going to be a test of good lending practices. Credit providers should be using all the tools at their disposal to ensure lending is responsible and that consumers aren’t overburdening themselves.”

Share on LinkedInShare on Twitter
Add New Comment
LoginRegister

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Barclays customers now able to “switch off” certain spending

Barclays customers now able to “switch off” certain spending

Link Asset Services acquires Dutch mortgage broker FlexFront

Link Asset Services acquires Dutch mortgage broker FlexFront

Hospitality sector suffers most company failures

Hospitality sector suffers most company failures

Upcoming events

ENJOY READING?

Fast lane: Why IFRS 9 is already accelerating debt sale activity
20/20 vision: How Credit Strategy is marking 20 years of representing credit
Rise of the machines
Cultural evolution: How utilities firms overhauled their approach to vulnerable customers
Standing their ground: Amid increased scrutiny from both MPs and regulators, BrightHouse is a lender very much under the microscope.
Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group