Just Letting
Credit & mortgage
advances
The household sector will continue to experience
financial pressure over the next year.
T
rends in household credit and its components
will continue to be driven by economic
developments, and the resultant impact
on household finances and consumer confidence.
The household sector is expected to continue to
experience some financial pressure over the next 12
months as interest rates are forecast to rise further
during the course of this year. As a result, growth
in household credit, including mortgage advances, is
forecast to remain largely subdued in 2015.
This year started of with continued low growth
in the total value of outstanding credit balances in
the South African household sector, with year-onyear (y/y) growth below the 4% level for the sixth
consecutive month In January. Growth in household
unsecured credit balances was lower compared with
December last year, while growth in secured credit
balances was at its lowest level since January 2012.
Household secured credit balances, with a value
of R1 076, 6 billion at the end of January and 75, 8%
of total household credit balances, recorded growth
of 2, 9% y/y at the end of January, virtually unchanged
from October last year. Secured credit includes
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Issue 7 2015
instalment sales, leasing finance and mortgage loans.
Growth in household in unsecured credit balances,
amounting to R343, 6 billion and 24, 2% of total
household credit balances, came in at 5, 3% y/y at the
end of January (5, 6% y/y at the end of December
2014) Unsecured credit consists of general loans and
advances, credit card debt and overdrafts.
“Growth in household credit
and mortgage balances slows
down further.”
The vale of total outstanding private sector
mortgage balances, including both commercial
mortgage loans, registered growth of 4, 7% at the
end of January, continuing on a steady upward
growth trend since a recent low of 3, 3% y/y at the
end of September last year. This was the net result
of a further acceleration in year-on-year growth in
corporate mortgage balances into double digits,
Just Property Magazine