The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
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From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
The BBA’s latest high street banking data shows that consumer borrowing through overdrafts, loans and credit cards grew at an annual rate of 6.7%.
Eric Leenders, BBA Managing Director for Retail Banking said:
“The new year saw homeowners make the most of historically low interest rates by taking advantage of competitive re-mortgage offers. Nearly 29, 000 of these deals were approved last month – 16% higher than January last year.”
Annual borrowing growth rates
Gross mortgage borrowing of £13.8bn in the month was 6.3% higher than in January 2016.
Net mortgage borrowing was 2.4% higher in January than a year ago.
Consumer credit annual growth rose in January to 6.7% despite weaker retail sales. Growth continues to be primarily driven by personal loans as credit card growth slowed for the third consecutive month.
Number of approvals
House purchase approval numbers of 44,657 were 2.5% lower than in January 2016 but 2.5% higher than December and above the 2016 monthly average of 41,320.
Remortgaging approvals of 28,862 in January were 15.7% higher than those in January 2016 and though lower than December’s approval numbers they are still above the 2016 average of 25,987.
Other advances were 15% higher than a year ago and the highest since January 2014.
Business borrowing annual growth rates
Borrowing by non-financial companies increased by £3.4bn in January however the borrowing was largely short term and will probably unwind next month. The annual growth rate was 2.1% in January, slightly down on previous months.
Net capital market issues in January 2017 were £1.0bn (net) compared to £17.2bn (net) for the whole of 2016.
Trends in net deposits
Personal deposits annual growth slowed slightly in January to 4%.
Non-financial companies deposits grew at an average annual rate of over 8% in 2015 but fell back in 2016 to an average annual rate of 5% and are currently growing at an annual rate of 3%.