Fastest Pace in Five Years: UK Consumers See Significant Increase in Borrowing

UK consumer borrowing surged at its fastest rate since 2018, with a 8.1% increase in the year up to October, reflecting the strain of rising living costs, as reported by Bank of England data on Wednesday.

Economist Paul Dales noted the hike in credit could be due to households needing to finance essential expenses amidst the cost of living crisis.

In October alone, consumers took on nearly £1.3 billion in new debt, indicating that spending has remained robust despite climbing interest rates.

Furthermore, mortgage approvals reached a peak since July at 47,383, although these numbers are still below the levels seen before the spike in mortgage costs last year.