24th June 2014

May 2014 figures for the high street banks

Richard Woolhouse Chief Economist at the BBA said:

“Our figures indicate that the heat appears to be coming out of the housing market. These are the first mortgage approval figures we have seen since the introduction of the Mortgage Market Review, so it is significant they have fallen for the fourth month in a row. This is being driven by a drop in remortgaging and people borrowing against the value of their homes.

“There has also been a welcome expansion in business lending this month bolstered by borrowing from the energy sector.”

  • Mortgage approval volumes have weakened further in May. The slowdown, possibly due to the new mortgage rules, appears to have impacted more on re-mortgaging and other secured loans rather than house purchase.
  • Business borrowing (exc. real estate) is trending upwards and is only 0.3% below its level a year ago.  Borrowing was boosted in May by funding infrastructure in the energy sector.
  • ISA deposits have been much lower in this year’s ‘saving season’ than in the equivalent time last year, possibly reflecting the greater savings flexibility announced in the budget.

stats24june14

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