Personal loans down on last year

The number of personal loans approved last month was down on the same period last year.

14:00 29 December 2004

The number of personal loans approved last month was down on the same period last year, according to the British Bankers Association (BBA).

Figures from the BBA reveal that there were 157,000 personal loans approved in November, which was down 33 per cent on November 2003 and 13 per cent down on October.

The number of loans approved for house purchase was 20 per cent lower than October and 41 per cent lower than November 2003. Approvals for remortgaging were also weaker.

"Weaker mortgage lending in November continued the pattern of reduced demand that we have seen over the second half of this year and there is little to suggest that mortgage appetites will change in the near-term, given the noticeable slow-down in the housing market," said David Dooks, director of statistics at the BBA.

"Overall consumer credit, despite a relatively weak rise in card borrowing, was stronger, following October's weaker growth."

New lending on personal loans and overdrafts, at just over 3.5 billion, was slightly up on the average for the previous six months.