People are making more enquiries about secured loans, HSBC has found
Consumer appetite for secured loans up, finds HSBC
Tuesday, 05 Apr 2005 10:46
The nation's appetite for loans increased 1.2 per cent in March, HSBC has found.
But the bank added that while demand rose last month, it remains well below the levels seen last year.
The
Household Sector Borrowing Confidence Index measures the demand in HSBC branches for personal loans, mortgages, and equity release products, based on the number of enquiries for these products.
Over the last three months, secured loans have supported the overall demand figures, HSBC found, with mortgage demand 14 per cent higher than in the last three months of 2004 and equity withdrawal enquiries up four per cent.
At the same time, personal loan demand dropped off - falling 2.9 per cent this year compared with the last three months of 2004.
John Butler, HSBC UK economist, commented: "Household appetite for debt appears to have stabilised at lower levels. The outlook, however, remains uncertain."
Dennis Turner, head of the bank's business economics team, added: "Mortgage activity continues to support the overall index, suggesting that the housing market may now have bottomed out."