Gross mortgage borrowing hits seven-year high in October
Gross mortgage borrowing reached its highest level in over seven years in October, figures released on Wednesday showed.
According to the British Bankers' Association (BBA), gross mortgage borrowing in October amounted to £12.9bn, 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 purchases up 21%, the report found.
In its High Street Banking survey, BBA added that bank lending to companies is polarised, with growth in lending to wholesale, retail and manufacturing sectors, while lending to the construction and real estate sectors continues to contract.
Meanwhile, net capital market finance has grown by £18.2bn in 2015 so far, with larger companies using that as an alternative to loans and overdrafts.
“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," said Richard Woolhouse, chief economist at the BBA.
"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."