BoE: Net lending turned positive in August

There were 52,317 mortgages approved in August, as total net lending to individuals rose by £0.7 billion, according to latest data from the Bank of England.

The 12-month growth rate continued to fall, by 0.1 percentage points to 0.8%, and the three-month annualised growth rate remained at 0.2%.

Within the total, net lending secured on dwellings rose by £1.0 billion, above July’s net repayment of £0.2 billion and above the previous six-month average of £0.6 billion. The 12-month growth rate ticked up by 0.1 percentage points to 0.9%. The three-month annualised growth rate increased to 0.4%.

Within total secured lending, secured lending by banks (excluding the effects of securitisations) increased by £2.7 billion, above the £2.3 billion increase in July and in line with the six-month average of £2.6 billion. The number of loan approvals for house purchase (52,317) was in line with the July figure and above the previous six-month average, whereas approvals for remortgaging (29,059) were below the July figure of 33,880 and lower than the previous six-month average. The number of loans approved for other purposes (26,256) was lower than in July and below the previous six-month average.

Consumer credit fell by a net £0.3 billion, below the previous six-month average. Credit card lending increased by a net £0.2 billion and other other loans and advances fell by £0.5 billion. The annual growth rate of consumer credit continued to fall, to 0.7%.

Simon Rubinsohn, RICS chief economist said:”The number of mortgages approved remained broadly unchanged in August at 52