24th February 2016

January 2016 figures for the high street banks

Richard Woolhouse, Chief Economist at the BBA, said:

“The start of the year has seen a significant rise in mortgage borrowing. It seems that this has been driven, in part, by borrowers looking to get ahead of the increases in stamp duty for buy-to-let and second home buyers scheduled to come into effect in April.

“Net lending to non-financial companies saw the biggest monthly jump since July 2008 as businesses take advantage of record low interest rates. Demand from the transport, storage and communication and construction sectors was particularly strong.”

Key points:

  • Gross mortgage borrowing of £13.6 billion in January was 38% higher than a year ago and the highest since mid-2008.
  • The number of mortgage approvals in January was 33% higher than a year ago, with remortgaging up 42% and house purchase up 27%.
  • Borrowing by non-financial companies increased fairly strongly in January, after declining in December, particularly in the transport, storage and communication and construction sectors.

High Street Banking Stats - 2016