(Bloomberg) -- U.K. households stepped up their demand for credit last month, according to Bank of England figures published Friday.
Mortgage approvals rose to a three-month high of 66,261 and unsecured credit grew by 942 million pounds ($1.19 billion), up from 631 million pounds in March.
The data suggest confidence was boosted by the delay to Brexit, which spared Britain an imminent no-deal departure from the European Union. Sentiment is also being underpinned by record employment, real wage growth and low borrowing costs.
But the outlook for lending remains subdued, with the resignation of Prime Minister Theresa May heightening the uncertainty hanging over the economy. House prices are continuing to grow at an annual rate of less than 1%, Nationwide Building Society said earlier Friday.
Borrowing on credit cards rose just 208 million pounds in April but other lending, which includes overdrafts, personal loans and car finance, more than made up for the slowdown. The annual rate of unsecured credit growth slowed to 5.9%, the least since June 2014. Credit is now expanding at half the rate seen in 2017.
Lending to non-financial business rose by 1.58 billion pounds. Non-resident investors bought 1.2 billion pounds of U.K. government bonds following purchases of 9.4 billion pounds in March.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Andrew Atkinson
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
