July 2017 High Street Banking and Gross Mortgage Lending data
- Annual growth in consumer credit provided by High Street banks2 has increased from 1.9% to 2.0%.
- Gross mortgage lending3 by all mortgage providers for July is estimated at £23.0 billion. Accounting for seasonal factors, this figure is above the average lending figures seen over the past year.
UK Finance data shows that consumer borrowing from High Street banks remained stable at
2% in July, compared with 1.9% in the previous month.
UK Finance also estimates that overall gross mortgage lending in July was £23.0 billion. Accounting for seasonal factors, this figure is above the average lending figures seen over the past year.
First-time buyers and remortgage activity on the part of homeowners has supported lending for some time, but we anticipate the pace of growth to slow slightly, dampened by a potentially more challenging economic outlook.
Commenting on the data, Eric Leenders Head of Personal at UK Finance said:
“Consumer borrowing from high street banks remained stable in July, as continued pressure on household budgets reduced spending and saving.
“It is business as usual for business lending as companies continue to borrow less and build their reserves, increasing deposits at an annual rate of 7.5%, while larger corporates are using the capital markets for funding.
“Steady levels of mortgage activity seen through the first half of the year continued into July. First-time buyer numbers continue to be strong, helped in part by government schemes. But that has been offset by home movers, where a shortage of homes on the market is limiting their activity.”
Kindly shared by UK Finance