July 2007 figures from the British Bankers' Association (BBA) for the Major British Banking Groups (MBBG) show that net mortgage lending rose by £5.7 billion. This was a higher increase than the £5.4 billion recorded in both the previous month and the recent monthly average. Underlying credit card borrowing fell by £0.1 billion, while loans and overdrafts rose by £0.2 billion.
David Dooks, BBA director of statistics, said: "Longer-term trends in mortgage lending are little changed, but July's strong rise was surprising, given the expected cumulative impact of higher interest rates. This resilience shows the popularity of home ownership and also reflects more re-mortgaging activity. Consumers' borrowing on cards again fell and personal loan and overdraft demand remained subdued because household finances have tightened. However, personal deposits are still being maintained."
Total net lending to individuals rose by an underlying £5,875 million in July, compared to a revised £5,487 million in June and £5,617 million in July 2006. Of the total rise, mortgages accounted for an underlying £5,733 million, compared to increases of £5,395 million in June and £5,497 million in July last year.
Consumer credit rose by £141 million overall; personal loans & overdrafts rose by £214 million compared to June's rise of £167 million, while credit card lending fell by £73 million compared to a fall of £78 million in June and an average monthly fall of £116 million over the previous six months.
