24th March 2016

February 2016 figures for the high street banks

Richard Woolhouse, Chief Economist at the BBA, said:

“Mortgage borrowing remained buoyant in February. It appears that borrowers are continuing to try to get ahead of the increases in stamp duty for buy-to-let and second home buyers scheduled to come into effect next month.

“Consumer confidence is also robust. Households are increasingly taking advantage of low interest rates by taking on more unsecured borrowing.”

Key points:

  • Gross mortgage borrowing of £13.2 billion in February was lower than in January but 33% higher than a year ago and the second highest increase since mid-2008.
  • The number of mortgage approvals in February was 26% higher than a year ago, with remortgaging up 31% and house purchase up 20%.
  • Unsecured borrowing by households is growing at around 6% per annum reflecting low interest rates and relatively strong household finances.