UK mortgage lending, consumer credit flat

UK mortgage lending and consumer credit rose by less than expected in August.

UK mortgage lending and consumer credit rose by less than expected in August.

The Bank of England said mortgage lending rose by £9.1 billion in August, less than the £10 billion forecast by analysts and down from £9.2 billion in July.

Approvals for home loans, which are seen as a leading indicator for the housing market, also came in slightly lower than expected at 119,000 in August from 120,000 in July.

Housing market surveys for August had shown strong price rises, hinting that the rise in borrowing costs to 4.75 per cent had not yet had an impact, and today's figures are unlikely to alter expectations for a further rate rise this year.

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But the data also showed that consumer credit rose by £755 million last month, well below forecasts and sharply down from July's £1 billion increase.

However, money supply growth remained buoyant, with the annual rate of M4 growth confirmed at 13.7 per cent in August - its highest rate since November 1990.