The British Bankers' Association (BBA) reports the latest figures from the Major British Banking Group (MBBG) show that net mortgage lending rose by £6.5b in November. This was the highest increase on record, exceeding the increase of £5.6b in October and a monthly average of +£5.7b over the previous six months. Unsecured personal lending was unchanged in November, compared with a net increase of £0.1b average over the previous six months. Loans & overdrafts fell by £0.1b, whilst underlying credit card borrowing rose by £0.1b.
David Dooks, BBA director of statistics, said: "Net mortgage lending strengthened further in November with the highest monthly rise on record. This shows just how strong secured lending is and how, as yet, demand has not been moderated by the climate of higher interest rates. As one might expect, fixed rate mortgages are proving popular, given their certainty over repayment costs. Although credit card borrowing stopped contracting in November, overall unsecured lending remained very subdued."
Analysis of MBBG sterling lending to individuals reveals that total net lending rose by an underlying £6,518m in November, compared to £6,036m in October and £5,421m in November 2005. Of the total, mortgage lending accounted for £6,540mn of the rise, compared to Octobers rise of £5,649mn. Consumer credit fell by £21m overall; personal loans & overdrafts fell by a £87m compared with October's rise of £722m, while credit card lending rose by a £66m compared with an underlying fall of £327m in October and an average monthly fall of £248m over the previous six months.
