Gross mortgage lending across the UK residential market dipped 1.2% to £21.5bn in September 2018 from £21.8bn last year. The UK mortgage lending drops were found out by trade association UK Finance.

UK mortgage lending drops

Compared to September 2017, high street banks’ mortgage approvals dropped 9.1%.

Approvals for house purchase decreased 10.1% to 37,352 from 41,529 in the previous year.

Remortgage approvals dropped 7.4% to 27,676 from 29,899 a year ago, while approvals for other loans fell 9.8% year-on-year to 8,615.

Credit card spending reached £10bn last month, up 3.4% compared to last September.

The outstanding level of credit card borrowing increased 5.7%, while personal borrowing through loans and overdrafts rose 2.3%.

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The data also revealed a growth of 0.9% in personal deposits. Instant access deposit levels rose 3.1% on a year-on-year basis, which UK Finance attributed to consumers’ preference for holding cash for immediate use.

UK Finance managing director of personal finance Eric Leenders said: “The mortgage market softened slightly in September, following strong remortgaging activity in the months preceding the recent base rate rise.

“There has been modest year-on-year growth in card spending. However, borrowing through personal loans and overdrafts has contracted slightly in recent months, suggesting demand for unsecured household finance is becoming more subdued. Consumers are increasingly choosing to keep cash close to hand, with deposits held in instant access accounts showing steady growth.”