You are here: Home - Credit Cards & Loans - News -

Consumer credit growth maintains brisk pace in September

Written by:
The growth rate of consumer credit remained broadly unchanged in September, at close to 10%, according to Bank of England statistics.

The ongoing growth in consumer credit makes an interest rate rise more likely when the Bank of England Monetary Policy Committee meets on 2 November. A recent report by credit rating agency S&P said the current double-digit annual growth rate in UK consumer credit was unsustainable.

Consumer credit has leapt from a growth rate of around 4% in 2014, to its current level. While the current growth rate is a little below its peak, it still gives cause for concern. In particular, as wage growth fails to keep pace with inflation, economists are worried that households are using credit to get by.

At the same time, mortgage approvals for house purchases fell slightly to 66,232 in September, close to their recent average. Remortgaging grew to £8.4bn in 47,598 transactions (up 2.8%) from August and up 6.4% compared to the previous six months average of 44,721 transactions for £7.8bn.

Anderson Harris director Jonathan Harris said mortgage approvals remained close to their recent average: “The resilience of the market is impressive given the uncertainty flying around about the economy – despite higher-than-expected growth in the third quarter – and the ongoing Brexit negotiations,” he said.

“Mortgage rates have started edging up on the back of higher funding costs but lenders are still competitive and keen to lend so it is not too late for those looking for a cheap fixed rate. The remortgaging market should continue to thrive this autumn.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week