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| Overdraft borrowing outstrips repayments by £297m | Overdraft borrowing outstrips repayments by £297m |
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| Consumers made more use of overdrafts in April than at any time this year, with borrowing outstripping repayments to the tune of £297m, according to figures from the British Bankers' Association (BBA). | Consumers made more use of overdrafts in April than at any time this year, with borrowing outstripping repayments to the tune of £297m, according to figures from the British Bankers' Association (BBA). |
| April was the first month of 2013 that bank customers borrowed more than they paid off and the largest figure for net borrowing since August 2011, with the exception of December 2012 when £492m of debt was taken on through overdrafts. | April was the first month of 2013 that bank customers borrowed more than they paid off and the largest figure for net borrowing since August 2011, with the exception of December 2012 when £492m of debt was taken on through overdrafts. |
| On a seasonally adjusted basis, net borrowing in the form of personal loans and overdrafts was in positive territory for the first time in 18 months, at a total of £507m. | On a seasonally adjusted basis, net borrowing in the form of personal loans and overdrafts was in positive territory for the first time in 18 months, at a total of £507m. |
| However, credit card borrowing was outstripped by repayments for the first time since February 2012, with debts on plastic reduced by £34m, according to seasonally adjusted figures. Both the BBA and commentators said that the timing of Easter had skewed the overdraft figures. | However, credit card borrowing was outstripped by repayments for the first time since February 2012, with debts on plastic reduced by £34m, according to seasonally adjusted figures. Both the BBA and commentators said that the timing of Easter had skewed the overdraft figures. |
| Despite a scarcity of decent savings rates to attract consumers, the BBA said money continued to flow into accounts, with the value of personal deposits up by 5.5% over the year to April. | Despite a scarcity of decent savings rates to attract consumers, the BBA said money continued to flow into accounts, with the value of personal deposits up by 5.5% over the year to April. |
| There was, however, a month-on-month fall, and the £1.4bn increase in the amount deposited in British banks was below the £2.3bn recorded in March and the previous six-month average of £3bn. | There was, however, a month-on-month fall, and the £1.4bn increase in the amount deposited in British banks was below the £2.3bn recorded in March and the previous six-month average of £3bn. |
| Howard Archer, chief UK economist at IHS Global Insight, said: "While there was borrowing of £507m in April in the form of personal loans and overdrafts following a drop of £666m in March, these figures were distorted by timing issues related to Easter, and it is perhaps best to focus on the fact that there was an overall net repayment of £159m in April/March combined." | Howard Archer, chief UK economist at IHS Global Insight, said: "While there was borrowing of £507m in April in the form of personal loans and overdrafts following a drop of £666m in March, these figures were distorted by timing issues related to Easter, and it is perhaps best to focus on the fact that there was an overall net repayment of £159m in April/March combined." |
| Archer added: "Overall, the underlying unsecured consumer credit data for April and the rise in personal deposits indicates that consumer appetite for taking on new borrowing is still limited while there is also an ongoing strong desire of many consumers to reduce their debt." | Archer added: "Overall, the underlying unsecured consumer credit data for April and the rise in personal deposits indicates that consumer appetite for taking on new borrowing is still limited while there is also an ongoing strong desire of many consumers to reduce their debt." |
| Mortgage lending figures from the banks showed a slight increase on March's numbers, with 59,813 home loans approved over the month, compared with 58,994 in the previous month. The figure was slightly above the previous six-month average of 59,843. | Mortgage lending figures from the banks showed a slight increase on March's numbers, with 59,813 home loans approved over the month, compared with 58,994 in the previous month. The figure was slightly above the previous six-month average of 59,843. |
| The BBA said it expected the government's schemes to help the mortgage market to assist more first-time buyers and movers "in due course". | The BBA said it expected the government's schemes to help the mortgage market to assist more first-time buyers and movers "in due course". |
| Repayments on home loans were greater than new borrowing, with mortgage debt to the banks reduced by £241m over the month. | Repayments on home loans were greater than new borrowing, with mortgage debt to the banks reduced by £241m over the month. |
| The BBA's statistics director, David Dooks, said: "New household borrowing totalled over £16bn in April. This monthly level has been fairly constant recently and with various government schemes, including the recent extension to Funding for Lending, banks are offering competitive rates and products." | The BBA's statistics director, David Dooks, said: "New household borrowing totalled over £16bn in April. This monthly level has been fairly constant recently and with various government schemes, including the recent extension to Funding for Lending, banks are offering competitive rates and products." |
| He added: "Low consumer confidence is depressing demand for new borrowing and consumers are continuing to save." | He added: "Low consumer confidence is depressing demand for new borrowing and consumers are continuing to save." |
| Figures for business borrowing showed that net lending by banks continued to fall, with non-financial firms reducing their debts by almost £2bn over the month, the third consecutive month of repayments and the fifth in six months. | Figures for business borrowing showed that net lending by banks continued to fall, with non-financial firms reducing their debts by almost £2bn over the month, the third consecutive month of repayments and the fifth in six months. |
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