February household borrowing increases 4.6 per cent

The British Bankers Association’s latest high street banking data show that consumer credit is growing at an annual rate of 6.6 per cent.

Gross mortgage borrowing of £13.4 billion in February was 4.6 per cent higher than in the same month last year. After allowing for repayments, February’s net mortgage borrowing was 2.5 per cent higher than in February 2016.

While business borrowing continues to be subdued growing by 0.9 per cent annually.

Eric Leenders, BBA Managing Director for Retail Banking said: “Elevated approval volumes for house purchases and re-mortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year. Consumers’ use of credit cards and personal loans reflect last month’s increased spending figures.

“Businesses continue to exercise a cautious approach to borrowing, using cash reserves and alternative lending sources to finance their operations.”