Gross Mortgage Borrowing up by 9% in May
By |Published On: 26th June 2017|

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Gross Mortgage Borrowing up by 9% in May

By |Published On: 26th June 2017|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Gross mortgage borrowing in May totalled £13.3 billion – much in line with recent months and 9% higher than a year before, show the latest high street banking figures from the British Banking Association (BBA).

Gross Mortgage Borrowing up by 9% in May

Gross Mortgage Borrowing up by 9% in May

Net mortgage borrowing in May was 2.4% higher than a year ago.

House purchase approval numbers of 40,347 in May were 3.3% lower than in May last year, and slightly down on the monthly average of 41,923 over the past six months.

Remortgaging approval numbers of 24,248 were 10% lower than in 2016, and down on the monthly average of 26,494 seen over the previous six months.

Other advances approved were 4.8% higher by number than in May last year.

The BBA’s latest data also shows that consumer credit growth was 5.1% in May, compared with 6.4% in the previous month.

This decline was driven by weaker growth in personal loans and overdrafts, with annual growth dropping from 6.3% to 4.8%, while growth in credit card borrowing also slowed, from 6.4% to 5.5%, reflecting weaker retail sales volumes in May.

The Managing Director of Retail Banking at the BBA, Eric Leenders, comments: “This month’s figures show that, in the run up to the General Election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending; with increased household costs affecting growth in deposits and saving.

“Businesses appear to be weighing up their options before raising finance to fund projects or developments. After a long period of subdued company borrowing, overall growth is starting to stabilise at a modest rate.”

The complete figures and analysis from the high street banks for May 2017 can be found on the BBA’s website here:

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About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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