Ian Mullen, chief executive of the BBA said:
“Despite a slowing housing market, mortgage lending remained strong in January, whilst consumer credit was subdued. These figures suggest that people are continuing to use equity withdrawal rather than personal loans and overdrafts for their borrowing needs. Credit cards might also have been used as an alternative to personal loans, which saw the smallest monthly increase since late 1999. Therefore, this picture appears to reflect decisions by consumers to minimise their borrowing costs. Additionally, personal deposits are recovering well after increased cash spending in December. In summary, individuals appear to be actively managing their finances.”