Consumer lending growth nears two-year low

THE ANNUAL growth rate of consumer lending slowed to 9.1 per cent in November 2017 – the lowest rate since December 2015.

The figures from the Bank of England reveal the rate of consumer credit has been falling gradually since peaking at 10.9 per cent in November 2016.

Borrowing slowed to 9.6 per cent in October, the lowest increase since April 2015, following rates of 10 per cent in August and 9.8 per cent in September.

Read more: Banks reign in unsecured lending

Meanwhile, the annual rate of credit card borrowing increased to 8.8 per cent in November but was still lower than the 9.7 per cent peak seen in April 2017.

It comes after the Bank of England expressed concerns about the rise in personal debt, particularly the large rise in credit card borrowing.

In November, the central bank increased interest rates for the first time in a decade – a move widely seen as an attempt to curb spending.

Peer-to-peer lenders have also been responding to worries about consumer borrowing. In August, Zopa scaled back higher-risk lending because of higher consumer default and insolvency levels.

Read more: OECD calls for borrowing caps to tackle consumer debt