UK consumer credit jumps in June but mortgage lending falls short

Consumer credit expanded more quickly than expected last month amid a jump in credit card use but mortgage lending fell short of forecasts.

According to the Bank of England, total lending to individuals increased by £7.1bn to reach 1,805.7bn or 0.4% month-on-month, with the latter roughly matching the clip of growth observed over the preceding quarter.

Within that, consumer credit growth re-accelerated to a 0.9% pace on the month, rising by £1.8bn (consensus: £1.0bn) to or by £203.9bn.

Credit card lending was especially strong, rising by 1.6% versus May, versus the average growth rate of 0.6% observed over the previous six months, or by £1.0bn to reach £62bn.

Other loans and advances meanwhile were up by 0.6% on the month to £142bn.

Lending secured on dwellings meanwhile was up by 0.3% month-on-month or by £5.3bn (consensus: £6.3bn) to reach £1,601.7bn.

Mortgage approvals for home purchase ran at 63,726 during the month (consensus: 65,900).