UK mortgage lending slowed last month, but credit card borrowing increased, according to the British Bankers Association monthly lending report. Net sterling lending by the UK's nine major banks rose STG10.5bn in May from the previous month, to STG910bn, according to the report. Mortgage lending in May slowed to a STG4.6bn rise after a STG5.20bn increase in April, while credit card lending rose by a record high of STG506m, compared with STG397m in April. Despite a stronger rise in credit card lending, the increase in total lending to individuals of STG5.3bn was below the recent monthly average of STG5.8bn.
Overall, net sterling lending by major UK banks - to individuals and businesses - rose STG10.5bn in May from the previous month, to STG910bn. In April, net sterling lending increased by STG13.2bn. Increases in corporate finance continue to be driven by real estate companies, according to the report. Meanwhile, building societies, whose figures are not included in the BBA report, said mortgage approvals rose to STG4.0bn in May from STG3.9bn the previous month. //www.fxcentre.com