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September 2013 figures for the high street banks

The outstanding level of unsecured borrowing grew by 0.6% over the year. Within this, annual growth in card borrowing of 5.9% outweighed the decline in personal loans and overdraft borrowing of 4.0%.

Gross mortgage borrowing of £9.7bn in September was higher than in August and above the average of £8.7bn over the previous six months.

Higher capital repayment (including homeowners moving between lenders)continues to generate the contractions in borrowing stocks seen over the past year and explains the subdued picture of net borrowing.

The numbers of approvals for house purchase and remortgaging both rose in September, with house purchase the highest since December 2009 and remortgaging the highest since October 2011. Assistance schemes for mortgages are helping first-time buyers and housing chains generally as housing market activity rises.

Approvals in September for borrowing other than house purchase or re-mortgaging are in line with those seen during rest of the year.

New credit card spending of £8.3bn in September was higher than the recent monthly average. Personal loans and overdraft net borrowing is contracting less than over the previous 6 months, because demand for overall unsecured credit is starting to increase. Demand is being stimulated by improving consumer confidence and the range of competitive offers available.   There was a strong increase in total non-financial business borrowing levels in September but annual growth overall continues to contract. Within that, however, SME borrowing levels are stable.

BBA statistics director, David Dooks said:

“September’s figures build on the growing picture of improved consumer confidence, with stronger gross mortgage lending, rising house purchase approvals and increased consumer credit.

“Business borrowing rose by £2.5bn net in September, the strongest monthly rise since 2009, reflecting increased demand from wholesalers, retailers and utility companies.”

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