United Kingdom's mortgage lending last October was recorded as the highest figures than any points in seven years.
According to marketpulse.com, British Bankers' Association said that mortgage lending last October summed up to a total of £12.9 billion which is 26 percent higher than last year's October and the highest record since August 2008.
Mortgage lending for home purchase also went up 21 percent totaling to 45, 437 approval last October and remortgaging recorded 24, 275 approvals or 34 percent. Also, "BBA said the average value of mortgages approved for house purchases was £175,600, while remortgagers typically borrowed £172,800."
"These statistics show that housing market activity remained strong in October, with gross mortgage borrowing 26% higher than a year ago and at its highest level for seven years Consumers remain confident and their incomes are growing. Mortgage rates are at multi-year lows and people are snapping up the competitive deals being offered by banks," said BBA chief economist, Richard Woolhouse.
In a report by theguardian.com, BBA revealed that percentage of personal loans have been increasing constantly with a 5 percent annual rate. On October, funds borrowed through personal loans and overdrafts reached £228 million. Borrowing in high street bank's credit card also experienced an annual increase last October with 5 percent compared to 3.9 percent growth in credit card market.
Terms for credit card borrowing are usually subject to change but personal loans' are fixed. "Any increase by the Bank will lead to higher costs," the report said.
Howard Archer, chief UK economist at IHS Global Insight, said "In considering borrowing, consumers need to allow for the fact that interest rates will likely start to rise during 2016, even if the increases are likely to be gradual and limited compared to past norms."
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