The latest lending figures from the Major British Banking Groups, published today by the British Banking Association, show that gross mortgage lending totalled £9.4 billion in January. Seasonally adjusted net lending rose by £4.1 billion or 1.1% to £385.1 billion, the largest monthly rise seen yet. Gross lending on credit cards, overdrafts and personal loans totalled £9.3 billion, whilst seasonally adjusted net lending rose by £0.9 billion or +1.1% to £79.1 billion.

Mortgage lending

• Gross lending was 53% higher than a year earlier, against a 45% year-on-year comparison in December.
• With repayments and redemptions weaker than in the previous month, totalling £5.7 billion, the resultant rise in s.a. net lending was 12% more and 7% above the recent trend.
• Nearly 165,000 loans were approved for a total value of £9.9 billion. Compared to a year earlier, there were 31% more loans approved for house purchase, 49% more for re-mortgaging and 37% more equity withdrawal loans.
• The average house purchase loan, of £79,900 was 12% higher than a year earlier.

Consumer Credit

• Credit card spending totalled £5.7 billion in January, some 6% more than a year earlier, but less than a 14% year-on-year comparison in December. In addition, strong repayments meant that net lending rose by just £0.1 billion (+0.6%) to £23.3 billion.
• Other gross lending, on personal loans and overdrafts, totalled £3.6 billion. After repayments, net lending (s.a.) rose by £0.8 billion (+1.4%) to £55.8 billion.
• In total, all forms of consumer credit rose by £0.9 billion net, 12% less than in December, though much in line with the recent trend.

Commenting on the figures, BBA Chief Executive, Ian Mullen, said: "Annual mortgage lending has been higher than the previous year in each of the last three and 2002 looks to be heading the same way. Despite a slower housing market at this time of year, there was firm demand for re-mortgaging and equity release products, and credit card repayments were strong. This all reflects the fact that we are seeing signs of more financially-aware customers, shopping around for financial products and understanding them more clearly. But there will always be some borrowers who find themselves unable to manage the debt they have taken on, so, as part of a package of advice and education, the banking industry is working with Government and others to launch a National Debt Line pilot scheme in March. The NDL will be staffed by experts giving free independent advice to people wanting to manage their debts better."

The Major British Banking Groups account for some two-thirds of all mortgage lending outstanding and around 70% of gross lending. Additionally, they provide over half of all consumer credit outstanding and, within that, some 70% of all card credit. They include twelve of the fifteen largest mortgage lenders in the UK (Abbey National, Alliance & Leicester, Barclays and Woolwich, Bradford & Bingley, HBOS (through Halifax and Bank of Scotland), HSBC Bank, LloydsTSB through Cheltenham & Gloucester, Northern Rock, Royal Bank of Scotland and National Westminster).