Mortgage lending on the rise in UK

People struggling with spiralling levels of personal debt could benefit from a new fund set up by the Department of Trade and Industry (DTI).

Mortgage lending in the UK is continuing to rise, according to new figures from the Major British Banking Groups.

Total lending to the private sector increased by 0.6 per cent in May on the previous month, with net mortgage lending showing particularly significant growth.

British Bankers Association director of statistics David Dooks said the figures suggested a relatively stable environment.

"Though May saw stronger lending to individuals from what now look like very subdued April figures, there is little change in the relatively weaker trends seen since the turn of the year.

"Mortgage lending was below its recent average and, although personal loans saw an average rise, credit card lending by the major banks continued at a very low level and in line with weak retail sales."

Unsecured personal lending rose by £800 million, a rise well above April's data.

Loans and overdrafts also enjoyed a rise, with Britons pushing the figures up by £700 million.