Mortgage borrowing at highest level since 2008 -BBA
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Gross mortgage borrowing of £13.6 billion in January was 38 per cent higher than a year ago and the highest since mid-2008, according to latest data from the British Bankers Association.
The number of mortgage approvals in January was 33 per cent higher than a year ago, with remortgaging up 42 percent and house purchase up 27 per cent, the BBA said.
Borrowing by non-financial companies increased fairly strongly in January, after declining in December, particularly in the transport, storage and communication and construction sectors.
Richard Woolhouse, chief economist at the BBA, said: “The start of the year has seen a significant rise in mortgage borrowing. It seems that this has been driven, in part, by borrowers looking to get ahead of the increases in stamp duty for buy-to-let and second home buyers scheduled to come into effect in April.
“Net lending to non-financial companies saw the biggest monthly jump since July 2008 as businesses take advantage of record low interest rates. Demand from the transport, storage and communication and construction sectors was particularly strong.”
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