Richard Woolhouse, Chief Economist at the BBA, said:
“The mortgage market has been softening since the spring, but for customers taking out home loans right now there are some great deals and we expect the market to begin to grow again this year.
“Robust employment data is making many of us feel more secure in our jobs and optimistic about our futures. That’s now feeding through to personal lending and credit card data, suggesting people are happy to finally replace the car or spend on household improvements.
“Outstanding business lending has been falling as larger firms have used the bond market rather than borrowing from banks. Despite this, outside real estate businesses are generally expanding their lending.”Read more
Nearly 2.3 million people aged between 70 and over 100 years old are now using internet banking, new industry figures compiled by the BBA show today.
The study also shows that more than 450,000 customers over 60 are harnessing banking apps on smart phones, iPads and other tablets.
The figures are the latest part the BBA’s Way We Bank Now work, which has charted the rapid rise of a range of new consumer-friendly banking technologies, including contactless cards and text alerts.Read more
Commenting on StepChange’s action plan on problem debt, BBA Executive Director Eric Leenders said:
“StepChange should be commended for bringing forward this action plan. The BBA welcomes its measures to encourage people to build up savings and financial resilience to help prevent them from falling into problem debt.Read more
Responding to the Prudential Regulation Authority’s consultation on the implementation of ring-fencing BBA Executive Director Paul Chisnall said:
“The larger UK banks are getting to grips with the nuts and bolts of how to put ring-fencing into place. The banking industry is gearing up to meet the challenge of making the necessary but varied and complex changes by the 2019 deadline.
“In order to deliver the reforms on time – banks, the regulatory authorities and a number of government agencies will need to pull together to avoid any bottlenecks. In particular we’d like the regulators to try to put in place the new regime as quickly as possible to allow banks to make final decisions about how to structure their businesses.”Read more
Customers benefiting from competitive lending
Commenting on today’s Credit Conditions Survey from the Bank of England, BBA Chief Economist Richard Woolhouse said:
“We have an increasingly mixed lending picture. These figures suggest demand for mortgage lending fell more strongly than at any time for six years, but appetite for personal loans and credit cards is rising consistently.Read more
Young adults are more likely than their parents and grandparents to transfer money to a fraudster
Young adults under the age of 25 could be much more vulnerable to scams and techniques like “vishing” than pensioners, according to polling. New online research has found that nearly 1 in 6 (16%) of those aged 18-25 who have a bank account told a survey that they would willingly authorise a money transfer into a “safe” account if someone they believed worked for their bank instructed them to do so in order to investigate a security breach.Read more
Ahead of the New Year, the BBA have put together a “must do” list of banking tips to keep your finances in good health in 2015.Read more
Commenting of the BBA’s High Street Banking statistics for November, the BBA’s Chief Economist, Richard Woolhouse said:
“Today’s figures show quite a sharp chill to the housing market in recent months – with house purchase approvals during November 20% lower than a year before.
“It will be interesting to see what impact the stamp duty changes the Chancellor unveiled in his Autumn Statement will have early in the New Year. They could prove a modest stocking filler for homebuyers and estate agents.
“It’s also striking to see that unsecured borrowing such as personal loans are growing at their fastest rate for six years. This suggests consumers may be feeling more confident which bodes well for a fruitful Christmas for retailers.”Read more
Commenting on the Bank of England’s Agents’ Summary of Business Conditions, BBA Chief Economist Richard Woolhouse said:
“Today’s agents’ summary makes it clear that credit conditions are improving. In particular, lending to smaller firms appears to be increasing and some sectors where credit had previously been very tight are now able to access bank finance more easily.
“That’s very important. We need businesses of all sizes to be confident about borrowing because that helps them invest and supports economic growth.
“The summary also underlines that the Mortgage Market Review is considered to be behind the slowdown in the housing market and supports the view that new regulation is partly responsible for this cooling.”Read more