Tuesday, August 1, 2006
Why banks are turning away UK borrowers
UK property is more expensive than it’s ever been – but it seems that people still can’t get enough of it. UK mortgage approvals rose at the fastest pace for five months in June. 120,000 loans were approved for new house purchase. But credit card spending was barely changed during the month. And borrowing on personal loans and overdrafts was also weaker than in recent months. In fact, unsecured lending growth was the lowest it’s been in 12 years. So is this a sign that British consumers are sensibly tightening their belts – or just that they are finally reaching the limit of their ability to spend?