25th November 2015

October 2015 figures for the high street banks

Richard Woolhouse, Chief Economist at the BBA, said:

“These statistics show that housing market activity remained strong in October, with gross mortgage borrowing 26 per cent higher than a year ago and at its highest level for seven years.

“Consumers remain confident and their incomes are growing. Mortgage rates are at multi-year lows and people are snapping up the very competitive deals being offered by banks.”

Key points:

  • Gross mortgage borrowing in October was £12.9 billion, 26% higher than a year ago and the highest since August 2008.
  • The number of mortgage approvals in October was 27% higher than a year ago, with remortgaging up 34% and house purchase up 21%.
  • Bank lending to companies is polarised. There is growth in lending to wholesale, retail and manufacturing sectors, while lending to the construction and real estate sectors is continuing to contract. Net capital market finance has grown by £18.2 billion in 2015 so far, with larger companies using that as an alternative to loans and overdrafts.