Demand for unsecured credit `weak` in 2010

Figures from the British Bankers` Association (BBA) have revealed that net lending from the main high street banks increased by £20bn in 2010.

The figures also revealed that the demand for unsecured credit was weak last year, with the number of purchases made on credit cards falling by 5.9% in December compared with figures from the same time in 2009.

Debt repayment levels were higher and "more than matching" new spending levels - so, as the BBA reports, "the stable growth in card borrowing largely reflected interest accruing".

Demand for personal loans was 6.2% lower than it was a year earlier.

Meanwhile, gross mortgage lending in December reached £7.9bn - which was in line with the figures recorded in previous months. Net mortgage lending recorded an increase of £0.9bn in December, which marks the lowest monthly increase since June 1999.

The amount of mortgage debt repaid in December continued to be fairly strong, "reflecting more remortgage approvals in recent months".