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Lending slowly rising, says BofE

The Bank of England has revealed that lending in the UK rose slightly over April.

It calculated that the increase in total net lending to individuals in April of £1.3bn was higher than the March increase of £0.7bn.

Within the total, the increase in net secured lending of £1bn was higher than the March increase of £0.6bn, but this was still below the previous six-month averages. Credit card lending also increased, by a net £0.30bn.

Also, the Building Societies Association has revealed that gross mortgage lending by building societies was £1.55bn in April 2009, down fro £3.921bn in April 2008.

BSA head of mortgage Policy Paul Broadhead says: “Although at low levels, building society mortgage approvals, which give some indication of future lending activity, were 14 per cent higher in April than in March. Therefore, the rate of decline in activity in the housing market may have started to slow, but overall the lending environment remains very challenging.”

In the savings market, savings balances held by building societies grew by £80m in April 2009, compared to £2.91bn in April last year. The BSA says this can largely be explained by societies experiencing a net withdrawal of £811m in April this year, compared to a net inflow of £1.83bn in April last year.

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