Mortgage figures very strong

Mortgage demand continued to be very buoyant, rising by £5.9bn - another monthly record. Though card borrowing was a little stronger than in October, rising by £0.3bn, other personal lending rose by just £0.4bn, the smallest monthly increase since +£0.3bn in September 2000.

Net sterling lending (after allowing for securitisations) increased by £9.8bn (+1.1%) to £882bn, according to the BBA. This was lower growth than October’s underlying rise of £12.9bn, though much in line with the recent monthly average of +£9.7bn. Lending to the financial sector, largely reflecting the short-term needs of securities dealers, rose by £3.2bn.

Simon Pitkeathley, executive director of the BBA said: “Equity withdrawal continues to play a significant part in lending to individuals, increasing mortgage lending and dampening other personal borrowing. As each month’s data come through, there appears to be no let-up in personal demand, though people do not appear to be using card credit more than at the same time last year.”