Mortgage borrowing remains strong
The British Banking Asociation has today published its High Street Banking Statistics for September 2015.
The number of mortgage approvals in September was 24% higher than a year ago, with remortgaging up 40% and house purchases up 14%. First-time buyers continue to find good deals available while existing borrowers are switching to lower fixed rates to control their mortgage costs.
Gross mortgage borrowing in August was £12.1bn. This was 17% higher than a year ago.
Bank lending to companies decreased in September and continues to be subdued. Net capital market finance has grown by £16bn in 2015 so far, with larger companies using it as an alternative to loans and overdrafts.
Richard Woolhouse, chief economist at the BBA, said: “Borrowing figures in the mortgage market remain strong as customers take advantage of record low interest rates. In particular, remortgaging remains high as savvy customers secure attractive deals ahead of a possible rate rise.
“Credit card purchases were 6% higher last month than a year ago. Buoyant consumer confidence and rising wages may well be playing a role here.”