Consumer Borrowing Increases Against A Backdrop Of Uncertainty

Recent figures from the Bank of England have revealed that consumers’ appetite for borrowing increased during February with the number of approved mortgages up on the previous month by 815 to 46,967.  Unsecured borrowing also increased by £768 in the month.  Remortgaging also reached a 2 year high, up 4,051 from the previous month, as home-owners exiting long term tie-ins looked to take advantage of lower interest rates.

Although personal lending saw significant growth overall in February, UK building societies reported a net increase in savings of £150m, a situation that is unlikely to continue over the coming months.

Director General of the BSA, Adrian Coles, stated “With earnings growing at a slower rate than prices, and imminent rises in some tax rates, it is likely to be difficult for households to substantially increase the amount they save over the months ahead.”

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