Residential mortgage lending continues to fall

Gross mortgage lending across the residential market in November 2018 was £23.1bn, falling by 2% when compared to the figure posted in November 2017, according to the latest data from UK Finance’s Household Finance Update – November 2018.

The organisation revealed that the number of mortgages approved by the main high street banks in November was 10.6% lower than the figure posted a year earlier, with approvals for house purchase being 1.2% lower, remortgage approvals 20.3% lower, and approvals for other secured borrowing down 12.2%.

However, despite mortgage lending being down, credit card spending in November increased by 7.5% when compared to November 2017. Over the past twelve months, the outstanding level of credit card borrowing grew by 5.3%. Personal borrowing through loans and overdrafts increased by 2.5% in the year to November.

Furthermore, over the past year, personal deposits in total grew by 0.7%, while deposits held in instant access accounts were 3.1% higher than a year earlier.

Commenting on the statistics, UK Finance personal finance managing director Eric Leenders: “Overall mortgage borrowing across the residential property market remains stable and the trend in households’ cash savings remains steady.

“Total credit card spending increased in November, while borrowing growth remains constant compared with November last year. The increase in spending, which is largely offset by cardholder repayments, reflects the growing use of credit cards as a preferred form of payment, particularly in travel, as consumers take advantage of stronger customer protection and value-added benefits.”

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