Britons "paying down debt"

Wednesday, May 26th 2010

Saving may have become less of a priority for many Britons, with debt repayment often the option instead.

This is according to statistics director at the British Bankers' Association (BBA) David Dooks, who commented on the April figures for the main high street banks in the UK.

An annual growth in net mortgage lending was noted at 4.3 per cent - down from 4.5 per cent reported last month.

Mr Dooks stated: "Household priorities are clearly reflected in these latest data […] Uncertainties about the impact of government policies and the economy on households and businesses will continue to dent consumer confidence."

Building up savings does not appear to be an approach followed by many households - a trend seen during the key Isa season, he continued.

And Mr Dooks added there is a subdued level of overall lending to companies, which was evident in last month's figures.

The BBA speaks on behalf of 223 banking members from a variety of countries.