UK mortgage lending, approvals slow in Aug but consumer credit still strong
Wednesday, September 29, 2004 8:51:49 AM
afxpress.com
LONDON (AFX) - UK consumer credit remained strong in August, but mortgage lending and approvals both slowed as the series of rate hikes delivered by the Bank of England takes its toll on the housing market
Figures from the Bank of England today showed net consumer credit rose to 1.86 bln stg in August, above the 1.77 bln rise seen in July but still comfortably below the 2.19 bln stg figure recorded in June
The figure was in line with analyst expectations for a rise of around 1.9 bln stg. Meanwhile, mortgage lending grew 8.386 bln stg, below July's growth of 8.743 and in line with analysts' forecasts. The August figure marks the weakest growth since August 2003
Mortgage approvals -- an important gauge of housing market activity in the coming months -- also fell considerably
The value of approvals of new mortgage loans rose 23.574 bln stg, down from a rise of 24.12 last month and the lowest rise since June 2003
The number of approvals meanwhile slumped to 96,000 from 100,000 in July
The figures confirm the picture painted by recent surveys from the likes of the British Bankers' Association and the Council of Mortgage Lenders, which has led to the belief that UK interest rates may not have to rise much further
The Bank of England has raised rates five times since November last year, taking the main repo rate to 4.75 pct
The British Bankers' Association has already reported that mortgage borrowing from UK banks and building societies showed its weakest rise in August since July 2002
Total net lending, which includes both lending secured on dwellings and consumer credit amounted to 10.250 bln stg, the lowest since December 2003
Total outstanding household debt, however, still remains above the 1 trln stg mark for the third month running
Credit card lending in August grew to 901 mln stg from 828 mln in July |
