UK consumers opted to repay unsecured debt in August

| September 29, 2010 | 0 Comments

Figures from the Bank of England today revealed that British households opted to repay loans and overdrafts last month.

The figures are evidence that consumers are concerned about the uncertainty surrounding the economy and massive spending cuts, opting not to go further into debt.

According to the Bank of England, consumers repaid a net £120 million in unsecured loans during the month.

Year-on-year, consumer borrowing is up just 0.2%.

The figures came shortly after the Bank’s deputy governor, Charlie Bean, urged savers to visit the shops and spend some of their cash to boost the economy.

Meanwhile, credit card lending marginally increased, albeit it was below the average of the previous six months.

The Bank also released mortgage approval figures for August today, which fell to a 7-month low.

According to the Bank, mortgage approvals for the month fell to 47,372 from 48,346 in July - however, the figure was in line with expectations.

Commenting on today’s data, Hetal Mehta, of Daiwa Capital Markets, said: “It is a mixed bag of data, with mortgage lending picking up, but approvals falling again and net credit back in negative territory.

“But this does not change the broad picture, that the housing market is in for a period of stagnation for the next nine to 12 months.

“Until there is a substantial recovery in credit extended, the outlook for the housing market is rather gloomy,” added Ms Mehta.

Tags: , , , , , , , , unsecured

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 6663 times, 2 so far today