Growth in mortgage lending continues to be driven by remortgaging according to UK Finance
UK Finance latest Household Finance Update – June 2018 reveals that estimated gross mortgage lending for the total market in June is £23.5bn, 2.1 per cent higher than a year earlier.
The number of mortgage approvals by the main high street banks in June fell by 2.1 per cent compared to the same month a year earlier. Within this only remortgaging approvals increased and were 3.4 per cent higher than for the same period a year earlier, this was offset by the 4.7 per cent fall in house purchase approvals and 4.3 per cent fall in other secured borrowing.
Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance said:
“Lending to households has continued to grow modestly in line with recent trends, with increased borrowing on credit cards mirrored by a fall in overdraft borrowing.
“Card spending saw relatively strong growth year on year, with retail sales buoyed by the sunshine and recent sporting events.
“Meanwhile growth in mortgage lending continues to be driven by remortgaging, as borrowers take advantage of attractive deals ahead of an anticipated Bank rate rise.”
Read the UK Finance Household Finance Update in full click here.