StepChange responds to Bank of England Money and Credit statistics
30 August 2024
New Money and Credit statistics from the Bank of England out today show mortgage borrowing in July reached its highest level in nearly two years at £2.8bn, up from £2.6 bn in June. Mortgage approvals in July were also at a near two-year high, while net consumer borrowing rose to £1.2bn, up from £0.9bn in June.
Commenting on the statistics, StepChange Chief Client Officer Richard Lane said:
“It’s encouraging to see signs of consumer confidence increasing, but the fact remains that cost pressures across the board are testing the financial resilience of millions of homeowners and borrowers. Our research shows that one in four mortgage holders are using credit to keep up with their housing payments – a worrying proportion given hundreds of thousands of people are due to roll off cheaper fixed rates in the coming months. Meanwhile, energy prices are due to rise again in October and rents continue to rise at record levels.
“The cost of living crisis will continue to cast a long shadow over many people’s finances, so it’s crucial the Government puts the right measures in place to address financial insecurity, including targeting the affordability of essential bills. For anyone struggling to keep up with their mortgage or facing unmanageable debt, free and impartial advice is available from charities like StepChange.”
Notes to editors
- The Bank of England’s Money and Credit statistics can be found here