UK mortgage lending slows

The increase in total net lending to individuals in August (£9.5 billion) was below the increase in July and below the previous six month average, according to figures from the Bank of England (BoE).

Both the twelve-month growth rate and the three-month annualised growth rate fell by 0.2 percentage points, to 9.9% and 9.2% respectively.

Within the total, the increase in net lending secured on dwellings (£8.5 billion) was also below the increase in July and the previous six-month average. The twelve-month growth rate fell by 0.2 percentage points to 10.8%. The three-month annualised growth rate also fell, by 0.3 percentage points to 9.8%. The number of loans approved for house purchase (109,000), remortgaging (96,000) and other purposes (64,000) were all lower than in July.

The increase in net consumer credit in August (£1.0 billion) was below the increase in July. Net credit card lending rose by £0.1 billion, slightly below the July increase. Net other loans and advances rose by £0.9 billion, broadly in line with the increase in July. Both the annual growth rate and the three-month annualised growth rate of consumer credit increased by 0.2 percentage points, to 5.5% and 6.1% respectively.