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Unsecured loans on the rise, Bank finds

Unsecured loans on the rise, Bank finds

Category: Loans

Updated: 05/01/2009
First Published: 02/01/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Unsecured loans and credit card spending rose in November, the latest figures from the Bank of England have shown.

Consumer credit rose by a similar figure to the previous month, with these forms of finance up by £0.4 billion.

However, the increase was found to be less than the average of the six months leading up to November and the annual growth rate continued to slow.

Secured loans rose by more than they did in October, although the annual growth of 3.9 per cent was almost two per cent less than in August.

And the statistics suggest that those seeking secured loans for house purchases are finding them increasingly difficult to obtain, as there were just 27,000 approved in November, compared to the 34,000 average of the previous six months.

Last week the Liberal Democrats called for the government to work with banks to encourage an increase in responsible lending, after the British Bankers' Association revealed similar figures.

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