Brits continue to repay more than they borrow

Tuesday, December 1st 2009

UK consumers continued to pay off more of their debts than they borrowed in October, according to new figures.

The latest statistics from the Bank of England show that while credit card borrowing rose by £100 million during the month, other lending - which includes personal loans - dropped by £700 million.

Despite this, mortgage approvals continued to increase on a monthly basis in October, with home loans rising to 57,345 compared with 56,205 in September.

Overall net lending to individuals saw an increase of £300 million in October.

Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors, noted that net secured lending rose by just over £3 billion in the three months to October, compared with £443 million in the previous quarter.

"While this is still way down on the level of lending seen at the height of the boom in the market, it does suggest that that there is now a little more give from lenders," he remarked.