Latest figures released today by the Bank of England have revealed that overall lending to individuals was £1.3 billion during May.
This figure is in contrast to the previous six month average of £1.4 billion and is much lower than March's figure of £1.7 billion, however, the twelve month growth rate remained unchanged at 1.0%.
The report's mortgage figures reflected a somewhat sombre housing market, with the number of home loans approved for house purchases lower than April's figure of 51,627, at 51,098. Remortgage statistics also highlighted a slight decline from last month's 30,799 to 29,244, revealing a lack of activity in this area of the market.
In terms of consumer credit, however, there was an increase of £0.7 billion during May, compared to the previous six month average of £0.4 billion.
The report also showed that credit card lending rose by £0.1 billion. The number of loans and other advances, such as overdrafts, also increased during May to £0.7 billion, compared to April's figure of £0.4 billion.
These figures suggest that more people are turning to various forms of credit and therefore increasing their debts as the cost of living becomes increasingly expensive.
A spokesperson for Capital Economics, said: "May's decline in mortgage approvals was surely related to the fact that lenders are once again reducing the availability of mortgage credit."
"Against a backdrop of renewed recession in the UK and the escalating crisis in the eurozone, mortgage approvals are unlikely to break out of their rut anytime soon."
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