Mortgage lending falls in August

The increase in total net lending to individuals in August (£1.4 billion) was below the increase in July and the previous six-month average, according to figures from the Bank of England BoE).

The twelve-month growth rate slowed further, to 6.2%, and the three-month annualised growth rate fell by 1.0 percentage points to 2.6%.

Within the total, the increase in net lending secured on dwellings (£0.1 billion) was below the increase in July and the previous six-month average. The twelve-month growth rate slowed further, to 6.0%. The three-month annualised growth rate fell by 1.2 percentage points to 1.9%. The numbers of loans approved for house purchase (32,000), remortgaging (64,000) and for other purposes (39,000) were all lower than in July.

The increase in net consumer credit in August (£1.2 billion) was above that in July, but below the previous six-month average. Net credit card lending rose by £0.7 billion, above the increase in July. Net other loans andincreased by £0.6 billion, below the July increase. The annual growth rate of consumer credit slowed by advances 0.1 percentage points to 6.8% and the three-month annualised growth also slowed by 0.1 percentage points, to 6.1%.