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UK mortgage borrowing 64% higher than a year ago

Tuesday, Apr 26 2016
Gross mortgage borrowing of £17.1 billion in March was 64% higher than a year ago and the highest borrowing since April 2008 following a reported sharp increase in purchase of buy-to-let and second homes, ahead of the increase in stamp duty on 1 April 2016. The number of mortgage approvals in March was 20% higher than a year ago, with remortgaging up 25% and house purchase up 14%. Unsecured borrowing by households is growing at around 6% per annum reflecting low interest rates and relatively strong household finances. 
Dr Rebecca Harding, Chief Economic Advisor at the BBA, said: “A surge in buy-to-let and second home buying ahead of the new stamp duty surcharge in April led to a sharp rise in March’s gross mortgage borrowing as people brought transactions forward. For households more widely, consumer credit continues to grow above real earnings growth, as improving consumer confidence and low interest rates combine to stimulate borrowing demand for personal loans, cards and overdrafts. Business borrowing is moderating within distribution, manufacturing, food and accommodation sectors, as large corporates use capital markets for their funding and both large and small businesses continue to build up deposits”.
 
Sterling is currently being traded few points above 1.4530 level. Pair is likely to find support around 1.4450 handle and resistance above 1.4560 level. Later today, in the US session, Durable Goods Orders and CB Consumer Confidence figures are scheduled for a release.
More in this category: « Aussie could weaken along with iron ore prices Durable Goods Orders rose 0.8% in March »

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