This was stronger than the previous month’s rise of £10.4bn and was above the recent average monthly rise of £9.5bn.
* Mortgage lending rose by £6.0bn, compared with the recent average of +£5.5bn a month. Within unsecured personal lending (+£1.4bn), card borrowing was more prominent than of late, rising by £0.5bn, whilst demand for personal loans also strengthened, after subdued growth in February.
* Overall lending to non-financial intermediaries expanded (+£3.0bn), though this was concentrated in only a few industries: Real estate companies again had a strong increase in their borrowing (+£1.2bn), offset by a net repayment (-£1.6bn) from transport & communications companies.
* Lending to non-bank financial intermediaries fell by £2.3bn. Increased lending to securities dealers (+£1.5bn) was more than offset by net repayments from leasing companies and miscellaneous intermediaries.
* Deposits from the private sector rose by £3.2bn (+0.5%) to £685.4bn. Of the rise, personal deposits accounted for a relatively small rise of just £0.9bn.
David Dooks, BBA director of statistics, said: "Mortgage lending and consumer credit were buoyant in March. The month saw a large rise in mortgage lending and, with consumer credit rising by more than in February, individuals’ appetite for borrowing shows little sign of abating. The consequences for the rest of the economy are also apparent in these lending figures, with stronger demand for finance from wholesalers, garages and retailers, sectors which are all underpinned by the consumer."
Analysis of MBBG sterling lending to UK public and private sectors
* Lending to individuals (after allowing for securitisations, loans acquired from special purpose vehicles, transfers, acquisitions, etc)
Net lending rose by £7,351mn in March, compared to £6,334mn in February and +£5,352mn in March 2003). Mortgage lending accounted for £5,955mn of the rise, compared to February’s +£5,551mn. Following February’s subdued rise of £377mn, March saw a strong rise of £911mn in loans and overdrafts, whilst card borrowing was also stronger than of late, increasing by £484mn.
* Lending to financial firms
Increased lending to securities dealers (+£1,482mn) was more than offset by net repayments from leasing companies (-£1,976mn), miscellaneous intermediaries (-£1,688mn, partly reflecting a restructuring of lending as equity) and insurance & pension funds (-£174mn)
* Lending to non-financial firms
Real estate continues to have a consistent strong demand for finance; lending to the sector rose by £1,166mn. Other notable rises in lending were to retailers (+£284mn), wholesalers & garages (+£185mn) and water supply (+£124mn).
