Response to Bank of England’s money and credit statistics

Steve McnicholasFollowing the release of the Bank of England statistics, Steve McNicholas, Managing Director – Credit and Marketing Data, Callcredit Information Group, comment: “Despite mortgage approval rates falling in December, borrowing levels remain at a record high with consumer credit lending growing by 0.4% since November. This is concerning in light of the upcoming termination of the Funding for Lending Scheme and Term Funding Scheme, which will likely result in extra charges for borrowers and rising mortgage costs.

“It is important that lenders don’t have a knee-jerk reaction to the scheme changes, for example by loosening their lending practices in an attempt to offset the impact. In order to protect individual borrowers but the wider economy from a rise in unsustainable household debt, robust affordability checks must always remain integral to any lending process - regardless of the market conditions.”