Member Article

2010 to see more saving, less borrowing

Consumers are expected to focus on building up their savings and paying off unsecured debt in 2010, according to new figures.

The British Bankers’ Association has revealed that demand for personal loans is weak, with borrowing through loans and overdrafts contracting by £526m.

This was the 12th month in a row during which consumers have repaid more than they borrowed.

Outstanding loan debt has fallen by £3.6b during the year so far.

David Dooks, Director of Statistics at the BBA, said: “Household priorities are showing up in November figures.

“Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances.”

Meanwhile, the number of mortgages approved for house purchase is at its highest level for two years during November.

A total of 44,713 loans were approved for people buying a home during the month, 152% above the low point reached in November last year.

But the BBA cautioned that the year-on-year jump reflected the weakness of the market in 2008, rather than a much stronger market now.

There were 22,360 remortgage loans in the pipeline during November, two thirds lower than in the same month of 2007.

This was posted in Bdaily's Members' News section by Ruth Mitchell .