Mortgage approvals and credit card spending hit record highs

MORTGAGE approvals and credit card spending reached record levels last month, industry data shows.

Banking trade body UK Finance has revealed the number of mortgages approved by high street banks in July 2019 hit a 10-year high.

There were 95,126 mortgage approvals, the highest monthly total since July 2009 when the figure was 99,970.

The biggest increase was for remortgages, up 19.4 per cent annually, while approvals for house purchase were up 16.4 per cent.

Credit card spending hit the highest level on record, up 8.2 per cent annually to £12bn.

The value of borrowing for personal loans was also up 9.3 per cent annually.

Increasing numbers of savers are also opting for easy access accounts, the data showed.

UK Finance’s figures showed personal deposits grew by 1.6 per cent in the year to July 2019.

There was a 2.5 per cent increase in savers opting for easy access accounts and a 1.9 per cent drop in the use of fixed rates.

Read more: BondMason finds BTL market remains tough for smaller landlords

Read more: JustUs set to launch home finance products after regulatory green light

“High street savings have been hit by the annual summer splurge, which is second only to the festive season for its ability to erode our savings,” Sarah Coles, personal finance analyst for Hargreaves Lansdown, said.

“But this year, instead of being a blip in our gradual building of cash reserves, it’s part of a whittling away of high street savings.

“Growth has fallen behind inflation, fuelled by the collapse in fixed term and notice accounts.

“Enthusiasm has no doubt been dampened by disappointing rates on the high street – many of which are offering less than one per cent in return for fixing for up to three years. The risk is that savers tire of trying to track down a decent rate – and give up saving altogether.”

Read more: Special report: Property investing