In its latest analysis of the mortgage market, UK Finance, the trade body representing market high street banks, suggest that lending grew in December compared to the previous year, with borrowers defying seasonal trends and purchasing a property throughout the festive period. Growth in credit card spending continues to be largely offset by an increase in cardholder repayments, with almost half of cards not bearing any interest at all. This reflects the growing trend of consumers using credit cards as a preferred payment method rather than as a means of borrowing, in order to take advantage of additional protections and value-added benefits.
Specifically gross mortgage lending across the residential market in December 2018 was £21.1bn, some 4.7 per cent higher than the same month the previous year. Gross mortgage lending across the residential market during 2018 was £267.5bn, some 3.8 % higher than in 2017. Looking forward, the number of mortgages approved by the main high street banks in December 2018 was 2.4% lower than the same month the previous year. Approvals for home purchase were 5.3 % higher, remortgage approvals were 5.8% lower and approvals for other secured borrowing were 18.9% lower.
The £11.0bn of credit card spending in December 2018 was 8.8% higher than the same month the previous year. The outstanding level of credit card borrowing grew by 4.7% in the twelve months to December. Personal borrowing through loans and overdrafts grew by 3.4% in the year to December.