UK October Consumer Credit Rises Strongly, Mortgage Approvals Edge Higher

British consumer credit continued to grow during October at rates not seen since 2006, while mortgage approvals edged up, Bank of England data showed on Monday.

While lending to consumers rose slightly less than forecast by 1.178 billion pounds last month, consumer credit was 8.2 percent higher compared with October last year — a rate of growth that matched September’s 9-1/2-year high.

Mortgage approvals for house purchases numbered 69,630 in October, up from 69,012 in September. Analysts in a Reuters poll had forecast 70,000 mortgage approvals were made last month.

The value of mortgage lending rose by 3.629 billion pounds from 3.562 billion in September, marking the biggest increase since April 2008 and outstripping forecasts for a 3.45 billion pound rise.

The figures suggest Britain’s housing market is starting to accelerate again after a dip last year when tighter rules on mortgage lending took effect.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.