BoE confirms highest secured lending since 2008

Secured lending in the UK has increased to its highest level since November 2008, according to the latest statistics from the Bank of England.

The Bank, which begins a new chapter today with the start of Mark Carney’s reign, reported a £858 million increase on April’s figures, igniting masses of confidence in the market once more.

The figure rose from £13.2 billion in April, to £14.08 billion in May, marking the highest level of lending secured on dwellings since November 2008.

There was a substantial increase in mortgage approvals, striking the highest rate since December 2009, with mortgage approvals hitting 58,242 in May, up from 54,354 in April.

However, credit flow to businesses continued to disappoint.

Net lending to non-financial businesses fell by £1.27 billion in May, with lending to smaller firms dropping by £452 million.

The results strike another blow to the Funding for Lending scheme, which economists were hoping to have taken a more substantial effect within the economy by Q3 of this year.