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| Version 3 | Version 4 |
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| Consumer borrowing surges in September | Consumer borrowing surges in September |
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| Consumers in the UK took on £1.7bn of debt in September – almost three times the average of the previous six months – driven by the biggest surge in unsecured borrowing in more than four-and-a-half years. | Consumers in the UK took on £1.7bn of debt in September – almost three times the average of the previous six months – driven by the biggest surge in unsecured borrowing in more than four-and-a-half years. |
| Figures from the Bank of England show that individuals using personal loans, overdrafts and other forms of consumer credit took on £0.9bn of borrowing during the month, a marked change from the summer when borrowing remained static in June and July and net repayments totalled £163m in August. | Figures from the Bank of England show that individuals using personal loans, overdrafts and other forms of consumer credit took on £0.9bn of borrowing during the month, a marked change from the summer when borrowing remained static in June and July and net repayments totalled £163m in August. |
| When £0.3bn of spending on credit cards is added in, new unsecured borrowing amounted to £1.2bn – the sharpest rise since February 2008. The figures follow positive retail sales data for the month, which showed a 0.6% increase in volumes, and news that the UK came out of recession in the third quarter of 2012. | When £0.3bn of spending on credit cards is added in, new unsecured borrowing amounted to £1.2bn – the sharpest rise since February 2008. The figures follow positive retail sales data for the month, which showed a 0.6% increase in volumes, and news that the UK came out of recession in the third quarter of 2012. |
| Howard Archer, chief UK economist at IHS Global Insight, warned against reading too much into one month's data, but said this could be an early sign that consumers were becoming more confident about spending. | Howard Archer, chief UK economist at IHS Global Insight, warned against reading too much into one month's data, but said this could be an early sign that consumers were becoming more confident about spending. |
| "The marked rise in consumer credit in September is potentially notable as consumers' appetite for taking on new borrowing has been limited for some considerable time, while there has also been an ongoing strong desire of many consumers to reduce their debt," he said. | "The marked rise in consumer credit in September is potentially notable as consumers' appetite for taking on new borrowing has been limited for some considerable time, while there has also been an ongoing strong desire of many consumers to reduce their debt," he said. |
| "If consumers are becoming more prepared to spend – helped by recent healthy employment growth, lower overall inflation and an edging up in earnings growth from the lows seen earlier in 2012 – then there is a real chance the economy can continue to grow following the third-quarter rebound in GDP." | "If consumers are becoming more prepared to spend – helped by recent healthy employment growth, lower overall inflation and an edging up in earnings growth from the lows seen earlier in 2012 – then there is a real chance the economy can continue to grow following the third-quarter rebound in GDP." |
| The Bank's figures showed lending secured on dwellings rose by £0.5bn, in line with the previous six-month average. | The Bank's figures showed lending secured on dwellings rose by £0.5bn, in line with the previous six-month average. |
| There was an increase in the number of mortgages approved in September to 94,385 from 90,023 in August. The number of loan approvals for house purchase reached 50,024, higher than the previous six-month average of 48,832. | There was an increase in the number of mortgages approved in September to 94,385 from 90,023 in August. The number of loan approvals for house purchase reached 50,024, higher than the previous six-month average of 48,832. |
| The number of approvals for remortgaging also increased, totalling 28,343 compared to the previous six-month average of 27,664. A price war on mortgages for borrowers with 40% to put down as a deposit, combined with an increase in the standard variable rate at Santander, may have prompted borrowers to move their loan to a new rate. | The number of approvals for remortgaging also increased, totalling 28,343 compared to the previous six-month average of 27,664. A price war on mortgages for borrowers with 40% to put down as a deposit, combined with an increase in the standard variable rate at Santander, may have prompted borrowers to move their loan to a new rate. |
| Mark Harris, chief executive of mortgage broker SPF Private Clients, said the Funding for Lending scheme launched at the start of August may also have boosted numbers. | Mark Harris, chief executive of mortgage broker SPF Private Clients, said the Funding for Lending scheme launched at the start of August may also have boosted numbers. |
| "The uptick in lending seen in September is caused by a number of factors: increased loan availability, better rates as a result of the Funding for Lending scheme, and increased confidence among buyers. Some more realistic pricing from vendors keen to shift stock that has been hanging around for a while is also helping," he said. | "The uptick in lending seen in September is caused by a number of factors: increased loan availability, better rates as a result of the Funding for Lending scheme, and increased confidence among buyers. Some more realistic pricing from vendors keen to shift stock that has been hanging around for a while is also helping," he said. |
| "The end of the double-dip recession illustrates that the economy is very much on the right track, which is crucial for consumer confidence, and should have a further positive impact on the housing and mortgage markets." | "The end of the double-dip recession illustrates that the economy is very much on the right track, which is crucial for consumer confidence, and should have a further positive impact on the housing and mortgage markets." |
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