Trade association for the UK banking sector, the British Bankers’ Association (BBA), recently released figures for high street banking in November 2015, which show that gross mortgage borrowing in the UK amounted to GBP12.8bn in November this year, an increase of 28% when compared to the same period in 2014.
According to the BBA, the highest monthly banking totals over the last two months have reached a seven-year record.
The number of house purchases in the UK was up by 20% for the period reported, with mortgage approvals rising in November by 25% year-on- year and remortgaging increasing by 31% compared to a year ago. Following speculation that interest rates could start to rise in 2016, mortgage brokers are recently said to have seen signs of people being keen to snap up the cheap home loan rates being offered by mortgage lenders.
November this year also saw an expansion in bank lending to companies, with a growth in lending to businesses in the manufacturing, and the wholesale and retail sectors. So far this year, net capital market finance has raised GBP23.2bni. Larger companies are reportedly using net capital market finance, such as issuing new shares for investors to buy, as an alternative to loans and overdrafts.
Chief economist at the BBA, Richard Woolhouse, commented:
“These statistics show the continued strength of the mortgage market, with monthly new lending higher than at any time over the past seven years.
“Net lending to companies is now expanding, particularly in the wholesale and retail sectors, as businesses take advantage of record low interest rates.”
The BBA represents the world’s largest international banking cluster and has more than 200 member banks headquartered in over 50 countries with operations in 180 jurisdictions worldwide.