Gross mortgage borrowing of £9.3bn in August was higher than in July and above the average of £8.4bn over the previous six months, according to latest figures from the British Bankers’ Association (BBA).
The numbers of approvals for house purchase and remortgaging both rose in August, with house purchase the highest since 2009 and remortgaging the highest since 2011. Assistance schemes for mortgage borrowing are also helping more first-time buyers and housing chains generally as housing market activity continues to increase.
Approvals in August for borrowing other than house purchase or re-mortgaging are in line with those seen during rest of the year.

David Dooks, BBA statistics director, said: “These figures suggest that consumer confidence is growing. For the first time in four years, annual growth in household borrowing on credit cards and personal loans has turned positive and mortgages approved for house purchase are also at their highest level since 2009.
“Business borrowing, influenced by large corporates using alternative market funding, again contracted, but within that, SME borrowing is stable.”
David Brown, commercial director of LSL Property Services, added: “Mortgage approvals are still a long way from their peak, and more importantly a long way from the levels that could make everyone a homeowner. This is excellent progress, but the mortgage industry has only conquered the foothills of a real recovery.
“Solvent banks, solid balance sheets, and economic growth are one thing. Beyond these foundations of the industry, sustainable growth for mortgage lending will depend on people earning more, and eventually saving more. So while the next few years could prove better times for some first time buyers, the number who live in privately rented accommodation is set to keep growing. Luckily that is more immediately affordable for many people. Rents are near record highs, but have risen by much less than inflation over the last year – and are one of the few expenses that have grown nearly as slowly as wages.
“So while landlords and buy-to-let lenders are making the most of demand, their investment is paying off, and in the long-run will help the next generation of buyers to save.”
