Banks say Brexit has not hit mortgage borrowing

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Brexit has not hit mortgage borrowing demand, according to figures from the British Bankers’ Association.

Gross mortgage borrowing this month is at £12.6bn, up by 6 per cent compared to July 2015. Net mortgage borrowing is also 3 per cent higher than last year.

Approval of home purchases is down 19 per cent from July 2015, though the first seven months of 2016 has seen a 2 per cent increase compared to the same period in 2015.

Remortgaging approvals are 6 per cent higher than in July 2015 and 21 per cent higher in the first seven months of 2016 than they were during this period in 2015. Other advances are 19 percent higher than this time last year.

BBA chief economist Rebecca Harding says: “These statistics are the first set of borrowing figures gathered since the EU referendum.

“The data does not currently suggest borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many borrowing decisions will also have been taken before the referendum vote.”

SPF Private Clients chief executive Mark Harris says: “The first set of lending figures post referendum show little signs of panic although those decisions to borrow would have been made before the outcome was known.

“Remortgaging is likely to go from strength to strength. This is not so much because borrowers fear a rate rise: rather mortgage deals are so cheap, in particular fixed rates, that it seems crazy not to snap one up. What remains to be seen is how long lenders retain their appetite to lend at such low rates.”