Year-on-year mortgage lending up 15%

Statistics released by the BBA have shown that Year-on-year, new mortgage lending is 15% higher and approvals for house purchase have risen by 5%.

Though approval processes were temporarily disrupted by the implementation of the Mortgage Market Review in early 2014, recent figures suggest a stable overall picture of approval numbers.

The report also shows that this year’s saving in ISAs and NISAs is running below investment levels over the same period last year. With the change to ISA rules, July saw £4.9 billion invested and there was a further £1.5 billion in August. However, total inflows in the year-to-date of £9.3 billion are below the £11.0 billion in the equivalent period of last year.

Higher unsecured loan demand continues to reflect rising consumer confidence and improving household finances. Net borrowing through personal loans and overdrafts is showing rising annual growth after contracting for a long period.

David Dooks, Statistics Director at the BBA, said:

“When customers feel more optimistic about the economic outlook they are much more likely to take on new borrowing.

The figures show that mortgage lending in August was up 15% on last year and that credit card spending remains robust. But I was particularly struck that after years of decline demand for unsecured personal loans is rising quite strongly again.”

Those products are often used to finance bigger purchase such as cars or major home improvements – the sort of spending we often put off until we feel confident about our financial circumstances.”