Mortgage borrowing continues to pick up
The BBA has published its High Street Banking Statistics for August 2015.
Key points:
– Gross mortgage borrowing in August was £12.2bn. This was 14% higher than a year ago and the largest increase since 2008. Net borrowing of £2.0bn was the highest monthly rise since August 2010.
– The number of mortgage approvals in August was 23% higher than a year ago, with remortgaging up 38% – at its highest level for four years – and house purchases up 16%. Existing borrowers are seeking fixed rates to control their mortgage costs, while market competition is also producing attractive deals for new buyers.
– Bank lending to companies increased in August but continues to be subdued overall. Capital market finance has grown by £11.5bn in 2015 so far, with larger companies using it as an alternative to loans and overdrafts. BBA chief economist Richard Woolhouse said:
“People are putting their money into bricks and mortar while interest rates are low and the timing of a likely rate rise remains uncertain.
“Mortgage borrowing continues to pick up. The August increase is the largest in five years, although borrowing is still some way below pre-crisis levels.
“Remortgaging numbers also continue to be strong, as shrewd homeowners snap up competitive deals.”
Please see here for the full report