Credit card lending rose £200m during June

Credit card data released by Bank of England


Bank of England releases credit card dataCredit card lending rose by £200m during June, the Bank of England has said.

New data released by the institution today shows an overall monthly increase of £100m for consumer credit, with gains in card lending trimmed by a net decline in debt attached to personal loans and other charges.

The three-month, year-on-year growth in consumer credit lending was found to have risen by 0.1% in June to hit 0.6%.

This signals that, after previously tightening their credit criteria due to the financial crisis, banks and other credit card providers could now be willing to lend more than before.

Meanwhile, the Bank of England also revealed that the amount owed on mortgages and other loans secured on property rose by £300m over June.

Mortgage approvals themselves rose from 44,169 in May to 47,584 in June, another signal that credit conditions are loosening on the high street.

However, Chris Skinner, banking analyst at Balatro, pointed out that levels remained weak when compared with the previous year. "Demand is flat because potential buyers believe that the bottom of the market has not been reached yet," he told the BBC.

Published: 30 July 2009