| Mortgage lending hits new record levels |
Mortgage lending rose by a record £3.98 billion in August, a 10% increase.
The British Bankers' Association says economic uncertainty hasn't dimmed people's enthusiasm for borrowing money.
However, card borrowing rose by only £88 million, around half the rise in August last year.
Total lending to the private sector rose by £11.4 million to £778.95 million.
Hotel and restaurant borrowing increased by £274 million, which is seen as a reflection of reduced tourism in the main holiday season.
Lending to financial firms was very strong in August, rising by £4.35 billion. This was driven by exceptional demand from securities dealers, and increased borrowing by investment and unit trusts.
BBA chief executive Ian Mullen says: "Fears over the direction of the economy seemed to have little influence on individuals' demand for borrowing in August.
"Mortgage lending continued to grow apace, with lenders' expectations of slowing growth not yet materialising."
Story filed: 10:14 Thursday 20th September 2001
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