Outstanding debt on credit cards rose to �759m in March

Britons continued their love affair with plastic in March, despite the war in Iraq and economy worries, with a surge in credit card spending, official figures show.

The Bank of England said spending on credit cards hit �10.6bn in March.

After repayments were taken into account, outstanding debt on credit cards rose by �759m, the highest increase since last August, to a total of �48.83bn.

Frederic Nze, consumer finance director at Barclays bank said: "This surprising increase in borrowing could have been a result of the sunniest March we've seen for 40 years, as people are more inclined to spend when the sun comes out."

Housing market

Mortgage lending was also up strongly.

The Bank of England said lending secured on properties rose by �7.4bn in March compared with an increase of �7.1bn in February.

But mortgage approvals fell to 98,000 from 100,000, the lowest level since April 2001, possibly indicating a slowing down in the market.

According to Nationwide's latest housing market survey, UK property prices remained unchanged during April.

The findings confirmed the recent cooling in parts of the UK's housing market, particularly in the South East.