UK credit card borrowing at record high, Bank of England data shows

Wednesday 1 June 2022 10:14 CET | News

The Bank of England (BoE) has released a survey revealing UK credit card borrowing soaring by most since 2005 as cost-of-living margins tighten.

The BoE said credit card borrowing was 11.6% higher than in April 2021, marking the biggest increase since November 2005, according to data cited by Reuters. Overall consumer credit, which includes personal loans and car finance deals, rose by 5.7% in annual terms, the highest rate since February 2020.

The increase in borrowing came despite business surveys showing signs of a marked slowdown in demand, particularly among consumer-facing companies, according to BoE.

The survey also pointed to a possible slowing of Britain's housing market, which has seen rapid increases in house prices over the past two years. Lenders approved 65,974 mortgages in April, the smallest total since June 2020 and down from 69,531 in March, the BoE said. A Reuters poll of economists had pointed to approvals of roughly 70,000.

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Keywords: credit card, credit scoring, lending, financing
Categories: Payments & Commerce
Companies: Bank of England
Countries: United Kingdom
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