The BoE’s latest Money and Credit report also revealed that the annual growth rate for net mortgage lending rose to 0.5% in June, after a rise to 0.3% in May, continuing the trend seen in previous months.
Gross lending fell to £20.8 billion in June, from £22.6 billion in May, while gross repayments decreased by £1.6 billion over the same period, to £18.7 billion.
“The latest figures from the Bank of England show an increase in mortgage lending and a fall in consumer credit borrowing as the summer gets into full swing,” said Paul Heywood (pictured left), chief data and analytics officer at Equifax UK. “All eyes now are on the Monetary Policy Committee August base rate decision.
“A number of high street lenders have been cutting mortgage rates, but hotter than expected inflation data has cast fresh doubts on a central bank rate cut and we’re yet to see the fallout of England’s late Euros surge in next month’s figures.
“Either way, prices are still rising, we’ve seen persistent growth in highly utilised credit cards, and households will continue to feel the pinch for some time.”