Gross mortgage lending in January is estimated to have been £21.9bn, 9.7% more than a year earlier and slightly above the monthly average of £21.4bn for 2017.
UK Finance Update for lending for January 2018 found UK businesses’ deposits grew by 7% in the past 12 months, while borrowing over the same period contracted slightly by 1.4%.
Within business sectors, manufacturers’ borrowing expanded modestly, while construction and property-related sectors contracted.
Eric Leenders, managing director, personal finance at UK Finance,said: “Gross mortgage lending in January increased by almost 10 per cent compared to the same period last year, and was higher than the monthly average, as customers took advantage of mortgage deals on offer at the end of 2017.”
John Phillips, Just Mortgages and Spicerhaart group operations director, said: “The latest figures from UK finance show that gross mortgage lending in January is estimated to have been £21.9bn, this is 9.7 per cent more than January 2017 and slightly above the monthly average of £21.4bn for 2017.
“This rise is likely to be a combination of people taking advantage of the great fixed rate mortgage deals that were on offer at the end of the year, and the stamp duty cut that was introduced for first time buyers in November.
“Thanks to the Help to Buy scheme and record low rates, 2017 saw the highest number of first time buyers in a decade, and with such a positive start to the year, I think 2018 could be even better.”
Stephen Pegge, managing director, commercial finance at UK Finance. added: “Business sentiment remains positive with confidence in short term trading conditions buoyed by the recovery in international markets.
“Investment levels remain broadly unchanged and borrowing continues to err on the side of caution, as companies adopt a ‘wait and see’ attitude to trading uncertainties, opting to use their deposits as buffers for spending decisions.”