UK Finance’s latest Household Finance Update has revealed that credit card spending reached £11 billion in August, up one per cent compared to the same month the previous year. Repayments have remained in line with credit card spending, showing that consumers are managing their finances effectively overall. Personal deposits grew by 1.4 per cent in the year to August 2019.
The level of credit card borrowing grew by 3.3 per cent in the year to August 2019.
Personal borrowing through loans in August 2019 was 4.5 per cent higher than in the same month a year earlier. Overdraft borrowing was 1.2 per cent higher in August 2019 than in the same month a year earlier, while the longer-term trend has seen overdraft borrowing decline.
Mortgage approvals for home purchase were 3.2 per cent higher, remortgage approvals were 0.1 per cent higher and approvals for other secured borrowing were 0.4 per cent lower than in the same month a year earlier, 85,931 mortgages were approved by the main high street banks in August 2019.
Gross mortgage lending across the residential market in August 2019 was £24 billion, 3.2 per cent lower than in the same month in 2018.
Richard Pike, Phoebus Software Sales and marketing director said“Overall, although the full market figures were lower than 2018, August showed some resilience in mortgage lending, especially lending from high street banks. This perhaps shows that many borrowers are creatures of habit and prefer to stick to the high street than shop around for better deals elsewhere.”
“With the ONS reporting that property transactions in August increased, up almost a third from July, it looks like completions in the coming months will show healthy activity. It appears that despite everything that is being thrown at us, in what has to be said are very uncertain times, the issue of moving or buying a new home is a wheel that really does keep on turning. As parliament gets underway again today it remains to be seen whether activities in Westminster will see people apply the brakes to any housing plans, which could affect the numbers down the line.”