24 April 2006
Lending in the UK saw a significant increase during March, as it rose much faster than in recent months.
Figures compiled by combining data from all of the UK's largest banking groups suggest mortgage lending fuelled the increase, while the amount borrowed through unsecured personal loans actually fell by £0.4 billion.
Money borrowed through loans and overdrafts fell by £0.1 billion, while £0.2 billion less was borrowed using a credit card during last month.
Total lending in the private sector saw a £23 billion net underlying increase in March, reaching a total of £1,191 billion.
This was double February's underlying increase of £11.4 billion and was also twice that of the six-month average.
"The contrast between stronger mortgage lending and net repayments of unsecured borrowing suggests that individuals are optimistic about the housing market, though careful about card borrowing, overdrafts or taking on personal loans," said David Dooks, the British Bankers' Association's director of statistics.
"When deposit growth over recent months is also taken into account, the aggregate financial position of the personal sector as a whole does not appear to be under strain."
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