POST Online Media Lite Edition


Banks extend record consumer credit in UK

Staff Writer |
Mortgage lending increased less than expected in November but consumer credit reached an 11-year high, Bank of England data on UK money and credit figures revealed.

Article continues below

November mortgage approvals rose to 67,505 from 67,371 in October but this was short of the 68,500 expected by economists.

The M4 measure of money supply growth slowed to 0.4% month-on-month from the 1.1% in October, bringing down the annual growth rate to 6.4%.

M4 lending excluding banks, the Monetary Policy Committee's preferred measure, rose robustly on the month, following a fall in October, with the annual growth rate holding steady at 6.1%.

Annual growth in lending to firms picked up slightly to 2.9% from 2.7%.

Meanwhile, reflecting the strong recent household spending, consumer credit rose by £1.9bn over the month to push the annual growth rate up to 10.8%, exceeding the £1.6bn average of the previous six months which was also the consensus prediction, and the highest level in 11 years.

What to read next

UK banks likely to reduce unsecured lending in Q3
Bank of England warns banks about risky lending
Customers more satisfied with smaller banks