Personal loans edged up in October, even as mortgages hit their lowest level in three months.
According to bank of england, total personal loans increased 0.1% month-on-month or Â£ 2.3 billion to Â£ 1.75 billion, a 4.4% year-on-year increase.
As part of this, consumer credit increased by Â£ 0.7bn net last month (consensus: Â£ 0.5bn) to reach Â£ 196.4bn, or 0.4% on the month, even as the effective rate on new personal loans hit 6.27% – its highest since March 2020, although it remained below its January 2020 level.
Credit card debt accounted for most of the increase, jumping 1.1% or Â£ 600million from September.
Compared to a year earlier, consumer credit was down 1.0%, compared to a 1.7% drop in September.
Mortgages, meanwhile, rose 0.1% on the month, or Â£ 1.6bn (consensus: Â£ 5.0bn) to reach Â£ 1.55bn, although the rate of Annual change slowed from 5.4% the previous month to 5.1%.
This follows a jump of Â£ 9.3 billion in September, when the loan was advanced to take advantage of the stamp duty land tax relief before it was completely reduced, the Bank said.
In contrast, the number of home purchase mortgage approvals fell from 71,851 in September to 67,199.
Large firms also borrowed more from lenders last month, to the tune of Â£ 2.0bn, offset by small and medium-sized businesses, which repaid Â£ 1.6bn.