Mortgage lending continues to slow

The increase in total net lending to individuals in June (£4.0 billion) was below the increase in May and the previous six-month average, according to figures from the Bank of England (BoE). The twelve-month growth rate slowed further, to 7.4%, and the three-month annualised growth rate fell by 1.1 percentage points to 4.5%.

Within the total, the increase in net lending secured on dwellings (£3.1 billion) was below the increase in May and the previous six-month average. The twelve-month growth rate slowed further, to 7.5%. The three-month annualised growth rate fell by 1.2 percentage points to 4.3%. The numbers of loans approved for house purchase (36,000), remortgaging (84,000) and other purposes (45,000) were all lower than in May.

The increase in net consumer credit in June (£0.9 billion) was below that in May and the previous six-month average. Net credit card lending rose by £0.4 billion, below the increase in May. Net other loans and advances increased by £0.4 billion, also lower than the May increase. The annual growth rate of consumer credit slowed by 0.2 percentage points to 6.8%; the three-month annualised growth rate fell by 0.6 percentage points to 5.7%.