Bank lending hits 7-year high


Banks’ gross mortgage lending last month hit £13.6bn, the highest since 2008 and up 38 per cent year-on-year, according to the British Bankers’ Association.

The BBA research, covering six large banking groups, shows the number of approvals in January was 80,285, up 33 per cent on the same month of 2015.

House purchase approvals made up 47,509 of the figure, up 27 per cent on January 2015.

Remortgaging approvals were 25,040, an increase of 42 per cent on the first month of 2015.

The remaining 7,736 were further advances secured against homes.

BBA chief economist Richard Woolhouse says: “The start of the year has seen a significant rise in mortgage borrowing.

“It seems that this has been driven, in part, by borrowers looking to get ahead of the increases in Stamp Duty for buy-to-let and second home buyers scheduled to come into effect in April.”