In the latest report by UK finance, it was indicated that there was a steady surge in gross mortgage lending in July. This was mainly driven by remortgaging as homeowners were looking into attractive deals in anticipation of the recent base rate rise. During the holiday period, card expenditure had strengthened due to an increase in spending. There was also an increase in retail sales due to the warm weather and the World Cup. UK Finance suggested that the wide economic outlook continues to stay diverse, with more households continuing to see their income being restricted due to growing inflation. This could explain the changes regarding the deposits that are held in instant access accounts since consumers are opting to keep their money close.
In addition to these figures from the report, UK Finance had published the gross mortgage lending figures for the total market in July, being £24.6bn. This is close to 7.6% higher than the previous year where the number of mortgage approvals by main high street banks in July had fallen by 0.8%, compared to the same month a year earlier. There was a decrease in house purchases and other secured borrowings of 0.6% and 11.7%, respectively.
Furthermore, the report also showed that credit card expenditure was 8.1% higher than a year earlier. There was also an outstanding level of card borrowing that grew by 5.3% over the year. The levels of outstanding overdraft borrowing were 4% lower when compared to the same time last year. The personal deposits had grown by 1.2% in the last 12 months. Deposits that were held in an instant access account were 3.8% higher than the previous year.
About the Author
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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