Growth in new credit for mortgages

New credit extended for mortgages grew by R2.3 billion for the quarter ended June this year, the National Credit Regulator (NCR) said on Thursday.

 

This was a 7.6 percent increase on the previous quarter ended March, and a 10.25 percent increase compared to June 2013, according to the NCR's Consumer Credit Market Report.

Around 90 percent of the mortgages repayments were up-to-date as at June this year.

NCR CEO Nomsa Motshegare commended consumers seeking assets that built credit.

She also encouraged consumers to use credit responsibly and live within their means.

The total value of new credit granted to consumers increased by R1.59bn, from R105.6b for the quarter ended March 2014, to R107.19bn.

The number of applications received for credit also increased from 9.67 million in March 2014 to 10.37m in June 2014.

The report showed an overall quarter-on-quarter growth for all credit types with the exception of "developmental" credit, said Motshegare.

These included the value of new mortgages granted, which increased from R30.84bn to R33.18bn and credit facilities with an increase from R16.22bn to R16.59bn.

Increases were also reflected in secured credit, from R35.35bn to R35.76bn, unsecured credit which increased from R18.82bn to R19.32bn, as well as short-term credit which increased from R1.23bn to R1.29bn.

Developmental credit was the only credit category that showed a quarter-on-quarter decrease of 66.53 percent, from R3.14bn to R1.05bn.

"As at June 2014, the total outstanding consumer credit balances... was R1.57 trillion, representing a quarter-on-quarter growth of 1.16 percent and a year-on-year growth of 6.96 percent," said Motshegare.

 

 

(File photo: Gallo Images)