Mortgage lending shoots up in August hitting a five-year high, BBA figures reveal
Mortgage lending rose at its fastest rate for five years in august, according to figures published by the British Bankers’ Association (BBA) this morning.
Net mortgage lending was £2bn in August, the highest monthly figure since August 2010.
Lending has been spurred on by a combination of factors including intense competition between lenders, low Bank of England policy rates and rising pay and employment.
The threat of low rates ending is also prompting a wave of remortgaging, which was up 38 per cent on the year to its highest level for four years.
Richard Woolhouse, chief economist at the BBA, said:
“People are putting their money into bricks and mortar while interest rates are low and the timing of a likely rate rise remains uncertain.
“Mortgage borrowing continues to pick up. The August increase is the largest in five years, although borrowing is still some way below pre-crisis levels.
“Remortgaging numbers also continue to be strong, as shrewd homeowners snap up competitive deals.”