In an apparent confidential
moves with the hope that majority of Brits will vote stay, British consumers
borrowed more than expected in May to buy homes and fund other purchases.
The amount of credit
extended to borrowers, which includes credit cards, personal loans and
overdrafts, rose by 9.9% compared with a year earlier. This was the fastest
annual rate in more than a decade and up from 9.6% in April. Over the month
consumer credit rose by about £200m to £1.5bn in May, reports the Guardian.
UK lenders approved 67,042
mortgages for house purchase last month, up from 66,205 in April, according to
figures published by the Bank of England. Economists had forecast a drop in
approvals to 65,250.
The figures suggest the
appetite among British consumers for borrowing money – and the willingness of
banks to lend – was strong as the 23 June referendum on Britain’s membership of
the EU drew closer.
George Osborne once pledged
a balanced economy, with growth based on a march of the makers but instead a
shocking imbalance of payments looms.
The Bank of England data
showed net borrowing on credit cards rose by £418m over the month in May, and
outstanding debt on cards is now £1.3bn more than at the beginning of 2016.
Consumers’ appetite for
borrowing on plastic has picked up markedly since the months after the
financial crisis, when borrowing slumped and on some occasions repayments
outstripped new debt says the Guardian.
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