Latest Bank of England consumer lending figures have been revealed which show that household borrowing growth moderated slightly in August. Annual consumer credit growth slowed to 8.1%, while secured lending growth ticked down to 3.1%.
The number of approvals for remortgaging, which has been volatile in recent months, increased to 53,125 in August.
Net finance raised by private non-financial corporations (PNFCs) remained positive in August. Within this, net bank lending to businesses was positive, whilst finance raised through financial markets was negative.
Responding to the latest figures Peter Tutton, Head of Policy at StepChange Debt Charity said With consumer confidence slipping over the summer against a backdrop of uncertainty caused by Brexit, it’s perhaps not surprising that credit growth has continued its downward trend. However, credit card borrowing keeps rising in contrast to other loans, and with household savings at a record low, means we must keep an eye out for issues arising out of emergency borrowing to ensure lending remains affordable and sustainable in the long term.”