The provision of consumer credit became “weaker” last month, according to a newly released report.
It declined by a total of Â£0.2 billion during February, compared to a Â£0.2 billion increase in January, according to the Bank of England.
Net lending for loans and advances dropped by Â£0.4 billion, while credit card borrowing rose by Â£0.2 billion.
Combined, these figures took the yearly growth rate for consumer lending to fall to 3.4 per cent, the body noted.
However, there was a slight improvement in the flow of mortgages between January and February, with this figure standing at 37,937 in the second month of 2009.
But the amount of people being approved a remortgage – possibly as a form of debt solution – dropped between the two periods.
Commenting on the data, the Council of Mortgage Lenders stated: “We will need to see a few more months’ figures before we can say with any confidence that market conditions are showing a fundamental improvement.”
By Jamie Price