UK banks’ net mortgage lending grew by 0.4% in the year to October, according to latest data published by the British Bankers’ Association (BBA).
Last month saw the banks lend £7.5 billion of new mortgages and approve the future draw-down of a further £8.2 billion, whilst households also took £1 billion of new personal loans and used the extended credit on cards to fund spending of £7.1 billion.
“Repayment levels are high enough to offset gross lending and generate subdued net lending data, not only in the household sector, but also in the business sector where large companies are using capital market funding,” said BBA statistics director, David Dooks.
“Cash levels in accounts are 6% higher than a year ago, as people continue to build up deposits, particularly in ISAs, as a buffer against uncertainty.”