Latest statistics from the UK Finance’s household finance for April 2018 has revealed that card spending was 9.8 percent higher than a year earlier. Outstanding levels of credit card borrowing grew by 5.2 percent over the year, down from an annual growth rate of 5.7 percent in March.
Other key statistics showed that:
- Gross mortgage lending in April is estimated to have been £20.4bn, 13.3 percent higher than a year earlier. The number of total mortgage approvals has also risen and is 11 percent higher, this increase is primarily driven by remortagage approvals which were almost 30 percent higher than a year earlier.
- Growth in personal deposits has been 1.4 percent over the year, slightly down on the previous six month average of 2 percent but still up compared to the same period last year, with consumers opting for instant access accounts over those with notice. ISA cash deposits across the high street banks saw a slight increase on the previous month to coincide with the end of the tax year.
Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance said “April saw steady growth in mortgage lending and approvals, following a slowdown in activity the previous month. This was driven by strong remortgaging levels, as borrowers locked into attractive deals amid expectations of a base rate rise. Card spending has strengthened following a subdued March. Despite the recent fall in inflation and the squeeze on household incomes starting to show some signs of easing, consumer confidence remains relatively low.”