Overall borrowing rose in December 2016 says BBA
The British Banker’s Association (BBA) today published figures for the High Street Banks for December 2016.
They mention in the news report that: Overall borrowing rose in December 2016. House purchase approval numbers were slightly higher than in December 2015 but in 2016 as a whole were 4.1% lower than in 2015. Remortgaging approvals were 30% higher than those in December 2015 and were at their highest level since October 2008.
Dr Rebecca Harding, BBA Chief Economist, said: “Overall, we’ve seen high levels of consumer and business borrowing, although there are early indications that 2017 could see softer demand for credit from business and households, as they anticipate future interest rate rises and wait for further clarity on Brexit.
“Consumer credit continued to be strong in December despite weaker retail sales.
“Re-mortgaging approvals were 30% higher than December 2015, reflecting borrowers’ desire to “lock in” lower interest rates ahead of potential rise later this year.
“However, reduced demand for business borrowing may signal plans for investment are being deferred or funded through retained earnings until there is more certainty on the UK’s economic prospects after Brexit.”
Read the BBA statistical report for December 2016 in full click here
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