Mortgage lending cools
Mortgage lending remains strong but demand appears to be cooling according to the latest figures released by the UK's leading banks.Data on the UK's borrowing released by the British Banking Association (BBA) indicates net mortgage lending rose by £5.2 billion in February.While still a strong increase, analysts noted the rate of growth had fallen again on a monthly basis, as well as in comparison to medium-term trends.In January lending rose by £5.4 billion, while the six-month average increase of £5.7 billion suggests the rate of mortgage lending is starting to ease.David Dooks, BBA director of statistics, commented: "Since last November, when mortgage lending peaked, we have seen three successive months of mortgage lending rising by less than in the previous month, with February's rise below the recent trend, suggesting a moderating demand in the market."Indeed, with total sterling lending to the private sector also inhibited â€" with an increase of £9.5 billion for the month in comparison to a rise of £20.7 billion in January â€" the signs are of a broader downturn in demand for credit."Consumer appetite for credit remains very subdued," added Mr Dooks. "Credit card borrowing was flat in February following recent falls and there was little personal loan demand." Unsecured personal lending fell by £0.2 billion in February.
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