Net lending for consumer credit was £1.8bn in April, a tremendous increase compared to the £0.4bn reported in March, according to the Bank of England’s (BoE) Money and Credit: April 2018 report.

Within that figure, net lending on credit cards was £0.6bn, while net lending for other loans and advances was £1.3bn, the report revealed.

Furthermore, the 12-month growth rate of consumer credit was 8.8% in April, a 0.2% growth on the 8.6% recorded in March.

The number of house purchase approvals were broadly unchanged in April, standing at 62,455. The number of remortgaging approvals experienced a similar trend, remaining at a similar level to March at 46,189.

Commenting on the housing figures, Legal & General Mortgage Club head of lender relationships Danny Belton said: “Although largely unchanged, mortgage approvals remain steady, with consumers looking to benefit from near all-time low rates and competitive products.

“For anyone, however, unsure of how they can take advantage of our current low interest rate environment, speaking with a mortgage broker is a good place to start. Brokers play an invaluable role in the mortgage process, guiding consumers through the thousands of products available, and as an industry we need to do more to promote their worth to ensure consumers find the most appropriate fit for their needs.”

Bluestone Mortgages director of sales and mortgaging Steve Seal also commented on the figures, stating that it is "unsurprising" to see a slight reduction in loan approvals for April, due to the speculation of an interest rate rise being "put to bed".

"However, outdated high-street lending criteria continues to prevent some borrowers from accessing mortgages. Customers should not be deemed ‘high risk’ off the back of one or two missed credit payments. These customers are not repeat offenders, nor just numbers on a credit score. Instead, the mainstream sector should adapt to ensure that this group of borrowers are not overlooked and, in the meantime, specialist lenders will continue to help the underserved onto the property ladder," Seal added.

However, while lending within the personal finance sector increased, lending to businesses saw a dramatic decline in April, with lending to non-financial businesses falling by £2.8bn, following a large increase in March.


The full report can be read here.

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