Lending growth slows in August, BoE reveals

1 October 2008

The 12-month growth rate in lending to individuals in the UK slowed again in August, the Bank of England (BoE) has revealed.

According to the BoE, growth in the amount borrowed slowed to 6.2 per cent, while the three-month annualised growth rate declined by one per cent to 2.6 per cent.

Meanwhile, the number of loans approved for house purchases during the month was 32,000 and the number of people remortgaging was 64,000.

In addition, it was found that the annual growth in consumer credit slowed by 0.1 per cent over the 31-day period to 6.8 per cent.

Recently, Melanie Bien, director of Savills Private Finance, advised consumers to take advantage of any attractive mortgage deals before they are withdrawn, the Times reported.

She said: "Confidence in the financial markets has once again been shaken and if this continues, with more banking names dragged into it, this will discourage lenders from lending to one another, pushing up the cost of borrowing in the money markets."

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