Gross Mortgage Borrowing up by 9% in May

Gross mortgage borrowing in May totalled £13.3 billion – much in line with recent months and 9% higher than a year before, show the latest high street banking figures from the British Banking Association (BBA).

Gross Mortgage Borrowing up by 9% in May

Net mortgage borrowing in May was 2.4% higher than a year ago.

House purchase approval numbers of 40,347 in May were 3.3% lower than in May last year, and slightly down on the monthly average of 41,923 over the past six months.

Remortgaging approval numbers of 24,248 were 10% lower than in 2016, and down on the monthly average of 26,494 seen over the previous six months.

Other advances approved were 4.8% higher by number than in May last year.

The BBA’s latest data also shows that consumer credit growth was 5.1% in May, compared with 6.4% in the previous month.

This decline was driven by weaker growth in personal loans and overdrafts, with annual growth dropping from 6.3% to 4.8%, while growth in credit card borrowing also slowed, from 6.4% to 5.5%, reflecting weaker retail sales volumes in May.

The Managing Director of Retail Banking at the BBA, Eric Leenders, comments: “This month’s figures show that, in the run up to the General Election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending; with increased household costs affecting growth in deposits and saving.

“Businesses appear to be weighing up their options before raising finance to fund projects or developments. After a long period of subdued company borrowing, overall growth is starting to stabilise at a modest rate.”

The complete figures and analysis from the high street banks for May 2017 can be found on the BBA’s website here: https://www.bba.org.uk/news/press-releases/may-2017-figures-for-the-high-street-banks/#.WVDPHlth1UM

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