23rd July 2014

June 2014 figures for the high street banks

Richard Woolhouse Chief Economist at the BBA said:

“These figures show that mortgage approvals are rising again after four months of decline. That’s encouraging because those decisions are a leading indicator of what’s happening in the housing market.

“But the jury is still out on exactly how the new rules are affecting customer applications or approvals.

“Nevertheless, the higher demand for personal loans suggests that the consumer’s  confidence in the recovery is growing.”

  • Mortgage approval volumes recovered slightly in June following the introduction of the new mortgage rules which had a limited impact on application processes as the rules were bedding in.
  • Net borrowing on personal loans and overdrafts is now expanding, instead of card borrowing, reflecting improving consumer confidence.
  • Improved lending growth is appearing in manufacturing, wholesale and retail sectors.

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