BBA: Consumers' appetite for borrowing falls

The level of unsecured borrowing in June remained at a similar level to the previous month, suggesting that consumer demand is slowing, a new report has revealed.

The latest figures published by the British Bankers' Association (BBA) found that unsecured personal borrowing was "virtually unchanged" in June, after falling by £.5 billion in May.

Additionally, net mortgage lending increased by £5.1 billion but remained below the figure recorded in May and the monthly average of £5.3 billion.

In contrast, personal deposits increased by £3 billion and remained close to the average monthly increase of £3.1 billion.

David Dooks, BBA director of statistics said: "Consumers' appetite for unsecured borrowing on cards, loans and overdrafts remains relatively flat and with personal deposits holding up, household budgets, though clearly tightening, seem to be in good shape."

Brian Morris, head of savings policy at the Buildings Societies Association, said that borrowers should be wary of "overstretching" their finances, while interest rates continue to rise.

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