The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
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
Commenting on the latest Bank of England’s Mortgage Lenders and Administrators Statistics 2015 Q2, BBA Chief Economist Richard Woolhouse said:
“The property market is hotting up. These figures show that savvy consumers are rushing to snap up ultra-competitive deals from lenders at a time when mortgage rates have hit record lows.
“Nearly four-fifths of lending is now on fixed-rate deals. Consumers are increasingly aware of the prospect of an interest rate rise on the horizon and are looking to lock in while they can.
“It’s interesting that the number of new arrears is also at its lowest on record. This suggests that lenders are ensuring that customers take out loans that they can afford to repay.”Read more
The financial services industry, together with charities and consumer groups, has launched the very first Financial Services Vulnerability Taskforce in order to look proactively at… Read more
Commenting on the publication of the Bank of England’s Q2 2015 Funding for Lending Scheme statistics, BBA Executive Director of Business Finance Irene Graham said:
“These new figures underline that banks are helping smaller businesses do what they do best – drive economic growth and create jobs.
“Banks are using the Funding for Lending Scheme to lower the cost of borrowing for businesses. This means that lenders are offering a range of highly competitive deals at a time when interest rates are already at a record low.
“Borrowers should feel confident about applying to their bank for finance. The SME Finance Monitor shows that nearly eight out of 10 businesses that applied for finance in the past 18 months were given the green light.”
Commenting on the latest Bank of England monthly Bankstats, BBA Chief Economist Richard Woolhouse said:
“Net mortgage lending is now back to pre-crisis levels. Together with the surge in mortgage approvals this provides further evidence that the housing market is hotting up.
“In particular, it seems that shrewd consumers are rushing to remortgage and grab competitive deals before interest rates start to rise from current record lows.
“The growing demand for unsecured lending also suggests that consumers are increasingly confident about the economic outlook.”Read more
New industry-wide figures published by the BBA show that bank lending to farms and other rural businesses increased by £1.3 billion last year – the largest rise since records began nearly 15 years ago.
The amount lent by major retail banks to agricultural businesses in the North and the South East expanded most quickly, both increasing by 15% in 2014.
However, there was growth in every region of the UK, with rises of 12% in Wales, Scotland and the North West.
The BBA’s Annual Statistical Abstract shows that loans and overdrafts to agriculture, hunting and forestry businesses grew to £12.4 billion in 2014 – up from £11.1 billion a year before and £10 billion in 2012.
This means the total volume of borrowing secured by this crucial part of the economy grew by £2.4 billion in two years – a rise of 24%.Read more
Richard Woolhouse, Chief Economist at the BBA, said:
“These figures show that thousands of us managed to tear ourselves away from the Ashes series to remortgage during July.
“This was a 29% surge on 12 months before and the highest figure we’ve seen for four years. Savvy homeowners are snapping up competitive deals before an expected increase in interest rates.
“There were concerns that new regulations had made applying for a mortgage more onerous. But remortgaging is still a straightforward process that can take even less time than Alastair Cook and his men took to beat Australia.”Read more
Richard Woolhouse, Chief Economist at the BBA, said:
“The housing market is beginning to hot up again, as we’ve seen a pick-up in the number of mortgage approvals for the last month. Interestingly, we’ve also seen an increase in the number of people remortgaging, which could be down to savvy borrowers taking advantage of competitive deals on fixed rate mortgages ahead of a possible rise in interest rates.
“Lending to some business sectors continues to show good results, although in the case of real estate banks are being cautious as they try to refinance bad loans.
“It’s good news that savings deposits are also up this month, as consumers put away a little something extra for a rainy day.”Read more
Consultation launched on new measures for cash savings account holders
The Financial Conduct Authority has launched a consultation on new measures for cash savings account holders.
Responding to the announcement, a spokesman for the BBA said:
“These have been frustrating years for savers. More than five years of the Bank of England’s base rate at a record low has fostered a low interest rate environment and that has not been easy for many customers to bear.
“During this period banks have made it easier for customers to find the right savings product for them. The electronic Cash ISA Transfer Service has helped to significantly reduce switching times, interest rate disclosure on savings accounts has improved and a number of providers have recently streamlined their savings ranges to help customers to navigate the market. We’re now working to deliver 7 day switching for the vast majority of Cash ISA transfers.
“We always encourage customers to review their savings regularly and to shop around for a better deal. We will look at these suggestions from the FCA with great interest.”Read more
The UK Government has introduced £40 billion in additional bank-only taxation over a period of a decade. From 2010-2020 banks will have faced an additional £4 billion a year in taxes on top of the tens of billions of other taxes that they already pay such as Corporation Tax, employment taxes, irrecoverable VAT and business rates.Read more