Credit card spending jumped by nearly 10% annually in April, says UK Finance

Credit card spending surged by 9.8% in April compared with a year earlier, according to a high street banking report.

The figures, from trade association UK Finance, also show that growth in the amount of money households are funnelling into their accounts is weaker than the recent average.

It said growth in personal deposits stood at 1.4% annually - slightly down on the previous six-month average of 2% growth.

UK Finance said Isa cash deposits across the high street banks saw a slight increase on the previous month to coincide with the end of the tax year.

Meanwhile, the number of mortgages being approved in April saw a big boost from people opting for remortgage deals.

Some 28,390 remortgage loans were approved - marking a 30% leap compared with a year earlier as borrowers locked into deals in anticipation of possible rises in interest rates.

And 40,564 mortgage approvals were made to home buyers - up by nearly 2% annually.

Eric Leenders, managing director, personal finance at UK Finance, said: "April saw steady growth in mortgage lending and approvals, following a slowdown in activity the previous month.

"This was driven by strong remortgaging levels, as borrowers locked into attractive deals amid expectations of a base rate rise.

"Card spending has strengthened following a subdued March.

"Despite the recent fall in inflation and the squeeze on household incomes starting to show some signs of easing, consumer confidence remains relatively low."

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