Details of the August 2015 UK BOE consumer credit and mortgage lending data report 29 September 2015
- Prior 1.173bn. Revised to 1.163bn
- Mortgage approvals 71030 vs 69900 exp. Prior 68764. Revised to 69010
- Mortgage lending 3.449bn vs 2.900bn exp. Prior 2.709bn. Revised to 2.822bn
- M4 money supply -0.4% v s+1.0% prior
- M4 ex-IOFC 3m y/y 2.2% v s3.9% exp. Prior 3.7%. Revised to 3.6%
That's a sizeable jump in mortgage lending. Reuters note that it's the biggest jump since 2008
Credit card lending dropped to 321m from 385m in Jul. Lending to SME's was 284m vs -70k prior. SME lending moved to flat on the year which is good news considering it had been dropping year on year since 2012
The increase in mortgages might be a mix of two factors. The drop in consumer credit is obviously good news for debt, and the take up in mortgages suggests that people are confident to get into housing and borrow. The mix comes if people are switching their debts into mortgages. If they are it's a sensible move as mortgage rates will stay low, compared to other debt products, while interest rates rise
GBPUSD is mostly unmoved as it holds below 1.5200 but EURGBP has dipped below 0.7400 by 10 pips
UK BOE consumer credit
