BBA: Mortgage lending flat year-on-year

Ryan Bembridge

September 26, 2016

August mortgage lending stayed flat year-on-year to reach £12.4bn, BBA’s High Street Banking report has found.

Lending levels inched up by 1% on last year and 3% higher on a net basis.

Shortly after the data was collected the Bank of England opted to cut interest rates to 0.25%.

Dr Rebecca Harding, BBA chief economist, said: “The… statistics published today point to a softer housing market, strong consumer credit and slightly weaker business borrowing in August.

“Mortgage borrowing is growing at a slower pace than it has for the last few months reflecting both the slowdown in housing market growth after the April spike and broader trends in the sector.”

Jeff Poole, managing director of Freedom Consumer Finance, said: “August’s figures from the BBA show that year-on-year borrowing patterns have not been affected by the UK’s decision to leave the EU.

“Whilst it is still too early to see if there will be any long-term effects of the vote for Brexit, this data sends a positive message for those hoping to access credit.”

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