LONDON- British citizens are actively looking to reduce their credit card debt. According to figures just released from the Bank of England, credit card lending saw the biggest drop last month since 2006. Fears of a double dip recession and the Eurozone crisis are causing many to reduce any debt they can. Also, consumer confidence is still extremely low, although it did improve slightly during the month.
Gaining approval for a mortgage is also getting harder, with approvals below average. In April, there were 51,823 approvals worth £7.6 billion, which is under the previous six-month average of more than 53,000. Approvals for remortgaging increased last month as many are looking to refinance before rates rise. Many homeowners have heard the recent announcements about possible rate increases.
Lenders are blaming the economy and costs of funding mortgages for the rate increase at the beginning of the month that affected more than one million homeowners.