Banks' mortgage lending increases 4.5% year-on-year
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There has been a 4.5 per cent annual increase in the net mortgage lending for high street banks in February, according to the British Bankers’ Association.
The figure exceeds the annual growth across the whole market in February, as banks continue to provide the majority of all mortgage finance, with the main high street banking groups accounting for two-thirds of all UK mortgage lending outstanding.
BBA statistics director David Dooks says: “Low interest rates continue to influence customer behaviour. Homeowners are reducing mortgage debt by making, or maintaining, higher repayments using the extra cash generated by lower mortgage rates.
“People are also holding more cash in their everyday accounts, rather than building up savings accounts and overall unsecured borrowing levels are standing still.
“Uncertainties in business trading are constraining company demand for finance, with large corporate sectors still seeing contractions in borrowing.”
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