Friday September 8, 2006
Unsecured personal lending increased over the last month, according to new research.
The amount borrowed on credit cards fell during July despite this. Figures from the Major British Banking Groups (MBBG) show that credit card lending fell by £0.3 billion over the last month, while the amount given out in the form of unsecured loans and overdrafts increased by £0.6 billion.
This represents a total rise of £0.3 billion in the unsecured loans sector. The study also found that mortgage lending grew by an underlying £5.7 billion.
Director of statistics at the British Bankers Association David Dooks said: "The robust nature of mortgage lending continues, with recent monthly net increases not far short of the movements seen when lending peaked in 2003/4.
He blamed poor credit card performance for the unspectacular growth registered in the unsecured loans sector: "By contrast, unsecured lending remained subdued in July, with borrowing on credit cards again reducing.
"Weaker deposit growth could also partly reflect the management of short-term personal finances becoming more focused, with more borrowing requirements being planned on a longer term basis."
News Source:
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