Consumer credit rose to £1.4bn in May

Latest Bank of England data has shown that net borrowing of consumer credit by individuals rose to £1.4 billion, from £0.9 billion in the previous month. et borrowing through other forms of consumer credit remained broadly unchanged at £0.7 billion over the same period.

Commenting on the date, Richard Pinch, Senior Director of Risk at Broadstone, said “The consumer credit market remains resilient with a significant increase in credit card borrowing through June as shoppers begin to prepare for their Summer holidays.

“Decreasing rates should support continued demand within the consumer credit market, especially given ongoing budget pressures impacting Brits.

“Lenders will need to remain vigilant as to the financial health of their borrowers, given the wider macroeconomic uncertainty, so that they are ready to provide proactive support to customers.”

John Phillips, CEO of Just Mortgages and Spicerhaart, said “Following a drop last month, an uplift in consumer credit borrowing shows we’re not out of the woods just yet with increasing reliance on the likes of credit cards amid stubborn inflation and clear cost of living challenges. There’s no doubt brokers have to be alive to these challenges to best support clients. The great news is that brokers are best placed to help navigate all these components and use their knowledge and expertise to find the best deal. It’s up to us to stay proactive and remind potential borrowers of this at every opportunity.”