The Bank of England’s latest Money and Credit Report has stated that total lending to individuals increased by £3.8bn in June, compared to the average monthly increase of £3bn over the previous six months.
The three-month annualised and 12-month growth rates were 3% and 2.6% respectively.
Consumer credit increased by £1.2bn in June, compared to the average monthly increase of £1bn over the previous six months. The three-month annualised and 12-month growth rates were 8.5% and 7.6% respectively.
Danny Waters, chief executive officer of Enterprise Finance, said: “Consumer credit and total lending to individuals kicked up a gear in June having spent the previous few months with their foot off the gas. The latest GDP figures show that the economy has finally returned to pre-crisis levels and as a result, the public mood has improved and people are feeling more buoyant about their own prospects than they have for some time.
“During the tail end of the downturn, many individuals were unwilling to take on extra borrowing, with many adopting a make-do-and-mend mentality to see them through the uncertain climate. Borrowing was merely ticking over. But now things have turned the corner, people feel more comfortable and are putting their foot down when it comes to spending big and are accessing extra funds to do so.
“The latest instalment of our Secured Loan Index showed that more than £800m of second charge mortgages were completed in the 12 months to May, showing homeowners aren’t afraid to utilise their assets to fund projects. We might not be in top gear yet – but spending and borrowing to fund it – is certainly beginning to accelerate.”
