UK consumer credit halves while mortgage approvals dip
By Benjamin Chiou
Date: Friday 31 May 2024
(Sharecast News) - The amount of credit given to UK consumers halved in April, according to data out on Friday from the Bank of England, while mortgage approvals fell as buyers held out for a potential cut to interest rates later this summer.
Net consumer credit rose by just £0.73bn last month, well below the £1.42bn extended to consumers in March, which was revised down from £1.58bn.
This was considerably below the £1.50bn expected by economists and was likely a result of higher borrowing costs.
Net borrowing through credit cards dropped to just £0.19bn from £0.66bn the month before, while other forms of credit like car finance and personal loans declined to £0.54bn from £0.76bn previously.
Individuals' borrowing of mortgage debt increased to £2.4bn from £0.5bn the month before. However, net mortgage approvals for house purchases - a closely watched indicator of future borrowing - fell to 61,100 in April, down slightly from 61,300 in March, while net approvals for remortgaging fell to 29,900 from 33,500.
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