21 June 2006
The UK saw a borrowing boom in May, according to statistics released by the British Bankers' Association (BBA).
Figures compiled from the country's major banks showed that total net lending rose by an underlying £6,167 million in May.
That was well ahead of last month's figure of £5,428 million and the £5,031 million that was borrowed in May 2005.
Mortgage lending was the main driver of the increased borrowing and accounted for £5,731 million of the rise.
Consumer credit also grew by £448 million, however, with personal loans and overdrafts rising by £699 million. That was over double the rise seen in April of £324 million.
The average increase in consumer credit over the previous six months was £316 million.
"May's rise in net mortgage lending, the largest monthly increase since the rise of £6 billion in April two years ago, shows the mortgage market to be very much alive," said David Dooks, the BBA's director of statistics.
"Overall unsecured lending rose more than the recent monthly average, but a notable aspect within this was a second large net fall in credit card borrowing in the last three months. This contrast between secured and card borrowing reflects customer sentiment."
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