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Unsecured loans 'remain subdued'

Unsecured loans 'remain subdued'

Category: Loans

Updated: 05/01/2009
First Published: 24/12/2008

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 all unsecured loans granted in the UK remained low in November, it has been found.

According to the British Bankers' Association's (BBA) latest statistics, the level for personal loans rose slightly on the previous month's figure to £2 billion.

However, this is still nearly 26 per cent lower than at the same point in 2007.

Credit card lending also continued its recent trend by recording a 7.9 per cent increase, while overdraft borrowing remained neutral, the BBA revealed.

Meanwhile, the figures for secured loans showed that mortgages for house purchase are now 60 per cent lower than 12 months ago, with less than 18,000 being approved in November.

Vince Cable, Liberal Democrat shadow chancellor, called for lenders and the government to come up with plans to restore previous levels of lending, stating: "It's understandable that people aren't willing to buy in a falling market but figures suggest that there are people who would buy if mortgages were available on reasonable terms."

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