BBA high street banking statistics for February 2015
Housing market shows signs of improvement as consumers take advantage of mortgage deals.
Richard Woolhouse, chief economist, BBA, said: “The increase in mortgage approvals is welcome news and a sign that the housing market is beginning to improve. We’re seeing stronger demand for mortgages as consumers take advantage of some of the very competitive deals currently available.
“Demand for loans and other types of personal borrowing is rising at its fastest rate since the financial crisis. Consumers are feeling increasingly confident about buying big ticket items, such as cars or home improvements, as the recovery really begins to take hold.
“Personal deposits grew very slowly as alternative savings vehicles remain attractive, particularly the new pensioner bond.”
Key points:
– House purchase approvals are starting to rise. Although February was 20% lower than last year, early 2015 is seeing higher demand than at the end of last year.
-Personal deposits at high street banks grew only slightly in February. The strong growth of investment in pensioner bonds may be related to this.
– Annual growth in personal loans and overdrafts (+4.4%) continued to rise, to the highest rate for more than six years.
– Lending to non-financial companies fell by £200mn, with growth in manufacturing, transport, storage and communication.