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Unsecured lending 'remains subdued'

Unsecured lending 'remains subdued'

Category: Loans

Updated: 25/06/2009
First Published: 25/11/2008

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 It is now over 6 months old so the content may be out of date.

The value of unsecured loans and credit card finance granted to consumers continued to be subdued in October, the latest figures from the British Bankers' Association (BBA) have revealed.

According to the body, the figure has risen by just 3.2 per cent over the last year.

There is now a total of £106.5 billion outstanding through these types of finance, with £31.3 billion being owed on credit cards and the rest through personal loans and overdrafts.

Statistics director at the BBA David Dooks noted that demand for finance is currently weak, adding: "Comparison of current lending levels with last year is obscured by the very different economic conditions that exist now, reflecting a much reduced appetite for borrowing."

Mortgage lending was also found to have remained low and senior economist at the Royal Institution of Chartered Surveyors Oliver Gilmartin noted that this will remain the case until interest rate cuts filter through to consumers.

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