Mortgage borrowing remains strong -BBA
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The number of mortgage approvals in September was 24 per cent higher than a year ago, with remortgaging up 40 per cent and house purchases up 14 per cent, according to the British Bankers Association’s High Street Banking Statistics for September.
First-time buyers continue to find good deals available while existing borrowers are switching to lower fixed rates to control their mortgage costs, the BBA said.
Gross mortgage borrowing in August was £12.1 billion, which was 17 per cent higher than a year ago.
Bank lending to companies decreased in September and continues to be subdued.
Net capital market finance has grown by £16 billion 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.”
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