Gross mortgage lending in February is estimated to have been £19bn according to UK Finance
Latest UK Finance update on lending for February 2018.
UK Finance reveals: Gross mortgage lending in February is estimated to have been £19bn, 4.9 per cent more than a year earlier but below the monthly average of £21.4bn for 2017. Remortgage approvals in the month are up over 9 per cent in both number and value compared to February 2017.
Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance said:
“There has been an increase in remortgage approvals compared to last year, as borrowers look to lock in to attractive deals amid speculation of further interest rate rises later this year.
“We are also seeing a continuing rise in credit card spending, reflecting the growing number of transactions carried out using cards, while other forms of borrowing such as overdrafts continue to fall.
“Meanwhile real wages continue to be squeezed by inflation, impacting on consumer confidence and retail sales. This pressure on household incomes should ease in the coming months, as the effect of the fall in sterling begins to fade and the strong labour market leads to a better outlook for wage growth.”
Stephen Pegge, Managing Director, Commercial Finance at UK Finance added:
“Bank lending to businesses saw modest year-on-year growth in February, driven by investment within the manufacturing sector.
“Credit balances have risen at an even faster rate as companies build reserves in the face of economic uncertainty and its effect on longer term business confidence.”
Read the UK Finance update on lending for February 2018 in full click here.