Banks: Borrowing down as Britons up their savings

1st January 1999

Mortgage lending was up 2.7% in January, compared to a 0.7% per cent monthly rise in December.

The Wall Street Journal reported the rise was a result of existing borrowers rushing to fix their mortgage rates: remortgage approvals in January were 5% higher than the previous month and 28% higher than in January 2010.

Net mortgage lending rose by £1.6 billion in January, higher than December's gain of £0.9 billion.

The number of remortgage approvals increased to 26,109 in January from 24,946 in December.

The BBC News website reported the BBA's statistics as evidence that stagnation in the UK property market was continuing.

The BBA said it approved just 28,932 loans for house purchase, although this was slightly higher than in December.

Meanwhile figures from HM Revenue and Customs (HMRC) showed that 54,000 homes were sold across the UK last month, the smallest number since January 2010.

David Dooks, statistics director of the BBA said: "We are seeing little change in the borrowing environment for households or businesses at the start of 2011. The high street banks have seen more remortgaging activity of late as people look to fix costs." 

"In both unsecured borrowing and company finance, the emphasis is on repayment rather than new borrowing."

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