The latest high street banking data from the British Bankers Association (BBA) indicates that gross mortgage borrowing was £13.4 billion in February, having risen 4.6% since February 2016.
The report from the BBA reveals that consumer credit is growing at an annual rate of 6.6%, while gross mortgage borrowing has risen 4.6% over the year to reach £13.4 billion. Net mortgage borrowing was up 2.5% on February 2016 and business borrowing edged up by 0.9% annually.
These figures can be compared to overall lending data recently published by the Council of Mortgage Lenders (CML), which estimated that gross mortgage lending was £18.2 billion in February. This put February’s figures 8% below January’s lending total of £19.8 billion, and revealed that February’s lending figures almost mirror the £18.1 billion lent in the same month a year before.
In today’s report, the BBA also released its members’ mortgage approval figures. According to the association, 42,613 house purchases were approved in February. While this is 4.6% lower than in February 2016 and 3.5% lower than in January, it was above the monthly average of 41,287 for 2016.
February’s remortgaging approval figure of 25,414 was also below January’s total and fell below the average for 2016 of 25,987.
The BBA listed other advances as being 4.8% higher than a year ago.
Eric Leenders, Managing Director for Retail Banking at BBA, said:
“Elevated approval volumes for house purchases and re-mortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year. Consumers’ use of credit cards and personal loans reflect last month’s increased spending figures.
“Businesses continue to exercise a cautious approach to borrowing, using cash reserves and alternative lending sources to finance their operations.”
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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