Mortgage lending falls while unsecured debt is repaid

According to the latest figures from the British Bankers` Association (BBA), mortgage lending by the major UK banks fell in June, while more unsecured debt was repaid than taken on, the BBC reports.

Despite the fact that net mortgage lending was 4.1% higher than a year earlier, during the month, the total number of home loans approved for house purchase dropped to 34,813.

The figures reveal that at the same time, people continued to repay more unsecured debt than they took on - showing that "consumers` safety-first approach" to unsecured debt has carried on throughout the year, as the BBC puts it.

In total, over the past year, repayment of consumer credit has outstripped new borrowing by 2.7%.

The amount of debt taken on using credit cards increased by £120m in June, while repayments of personal loans and overdrafts outstripped new borrowing by £314m.