UK mortgage and consumer lending remain robust in September

Lending conditions remained robust in the UK in September, the latest mortgage approvals and consumer credit data from the Bank of England showed on M

Lending conditions remained robust in the UK in September, the latest mortgage approvals and consumer credit data from the Bank of England showed on Monday.

Mortgage approvals

The number of mortgages approved for home purchases was 66,232 in September, down from 67,232 in August, but above the forecasts of analysts polled by Thomson Reuters.

The data showed echoes of recent housing surveys that suggest demand has slowed over the past few months.

Consumer credit

Net lending to consumers rose by £1.606bn in September, also beating analysts’ expectations.

The annual growth rate in unsecured consumer lending, however, dipped to 9.9% from 10% in August.

“The latest figures will do little to assuage policymakers concerns about financial stability risks,” said Paul Hollingworth at Capital Economics.”

He added, however: “Households are still confident enough to borrow in order to smooth their consumption while their real incomes are being temporarily squeezed.

The data, he continued, “provides another reason to think that the economy should be able to hold onto a decent amount of momentum in the near term”.

CarneyBank of England governor Mark Carney: The Bank’s rate-setting committee is expected to raise rates on Thursday: BoE

Bank of England

Most analysts believed there was nothing in the data that should deter the Bank of England from raising interest rates by a quarter point when the Bank’s monetary policy committee meets on Thursday.

The pound got a small lift from the data, climbing 0.2% to $1.3160 against the dollar.

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