Consumer Borrowing Slows
5th January 2018.
British households’ borrowing binge has fallen back to its slowest pace in two years, indicating the peak of the boom may now be in the past.
Unsecured borrowing grew by 9.1 percent in the 12 months to November, the Bank of England has said, down from 10 percent in August 2016.
The Bank’s governor, Mark Carney, and fellow officials had warned lenders that the surge in credit could get out of hand and encouraged restraint.
Finally, it appears the warnings were heeded as lending growth is slowing.
However, the debt charity, StepChange, has warned that this slowdown in borrowing is far from the solution that will reduce the country’s debt burden.
“Millions of people continue to use credit just to get by; while the fall in wages leaves many more families vulnerable to debt,” said Peter Tutton, head of policy at StepChange Debt Charity.
On the other hand, the housing market has picked up in the last few months.
Mortgage lending picked up a touch with homeowners taking out £21.6 billion of loans in November, amounting to an extra £3.5 billion after repayments.
A total of 133,116 mortgages were approved in the month, the highest number since 2008.
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