By contrast, personal loan demand was weaker, rising by just £0.3 billion in July, around half the June figure. Credit card lending bounced back to post a rise of £0.4 billion. Total net sterling lending to the UK private sector increased by £12.2 billion (+1.3%) to £923 billion in July. This rise was well above the previous month’s underlying increase of £4.5 billion and materially larger than the recent monthly average of £9.1 billion. The underlying increase across all forms of lending to individuals, of £6.2 billion was above the recent monthly average of £5.6 billion.
Roger Brown, BBA executive director, said: “The major banks’ lending was buoyant in July. Lending to individuals strengthened somewhat, with mortgage lending posting a rise above the recent trend. The rise in unsecured personal borrowing was close to the recent monthly average. Substantial short term borrowing by securities dealers contributed to the overall lending figure for the month.”
