Mortgage lending underpinned the major banks total net lending in June, which was up £4.6bn on the previous month. Despite this, the £4.6bn figure was well behind the recent monthly average of £9.1bn, according to the latest figures from the British Bankers’ Association (BBA).
However, mortgage lending increased to an underlying £5.3bn in June, up from the £4.6bn rise seen in May. This was a much stronger performance than either credit card lending (+£0.2bn) or personal loan lending (+0.6bn).
David Dooks, director at BBA statistics, said: ‘As people have grown accustomed to the lower costs of carrying debt, there seems to be few signs of any real fall in borrowing demand. The substitution of products and the competitive marketplace are resulting in month to month fluctuations for different types of personal borrowing, but looking through this mixed picture, overall lending to individuals by the major banks was slightly stronger in June than the recent trend.’
The BBA noted that the outlook for the mortgage market is still largely positive as lending to real estate companies increased by £1.4bn. This was the seventh consecutive rise over £1bn, which it claimed reflected the buoyancy of property markets.