UK mortgage approvals rebound, credit card annual rate 12.5%
Net mortgage approvals rose to 58,200 in June. Credit card borrowing accelerated to 12.5% annually. A BOE survey showed default rates at the highest since 2009.
The Bank of England reported net mortgage borrowing of £7.7 billion in June, up from £3.3 billion in May. Net mortgage approvals rose to 58,200, below the six-month average of around 61,400. Approvals for remortgaging increased to 34,200 from 33,800.
Consumer credit borrowing rose to £1.8 billion, holding in line with the six-month average. Credit card borrowing accounted for £0.9 billion, and other forms of consumer credit also totaled £0.9 billion. The annual growth rate for all consumer credit edged up to 9.1% from 9.0% in May. The annual rate for credit card borrowing accelerated to 12.5%, up from 12.0% in May.
The central bank's quarterly survey of lenders showed that the proportion reporting a rise in default rates on secured loans over the previous three months exceeded those reporting a decline by 34 percentage points. That was up from 18 percentage points in the first quarter and the highest reading since 2009, the survey said.
The pound traded near $1.27 after the release, according to forex market analysis. The GBP/USD pair has been range-bound as traders weigh the BOE's interest rate path.
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