Mixed picture on lending front

February saw a mixed picture on the lending front - latest data from the Bank of England showing a decline in mortgage lending against a backdrop of an increase in consumer credit.

The increase in total net lending to individuals last month (£9.5 billion) was £0.6 billion lower than the increase in January, but in line with the previous six month average. The 12-month growth rate remained at 10.3%.

Within the total, the increase in net lending secured on dwellings (£8.1 billion) was £0.8 billion lower than the increase in January but broadly in line with the previous six month average. Again, the 12-month growth rate remained unchanged from January - this time at 10.6%.

Meanwhile, the number of loans approved for house purchase fell to 115,000 last month. Approvals for other purposes were 5,000 lower, but those for remortgaging were 3,000 higher.

Elsewhere, the increase in consumer credit (£1.4 billion) was higher than in January. Credit card lending increased by £0.5 billion last month compared with £0.6 billion in January, while other loans and advances rose by £0.9 billion (£0.6 billion in January). The annual growth rate continued to fall, to 8.7%.

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