The number of mortgages approved by the British Banker’s Association fell more-than-expected last month, industry data showed on Wednesday. In a report, British Bankers’ Association said that BAA mortgage approvals fell to a seasonally adjusted 37.7K, from 39.8K in the preceding month whose figure was revised down from 40.1K. Analysts had expected BAA mortgage approvals to fall to 38.5K last month.
Dr Rebecca Harding, BBA Chief Economist, said: “This month’s BBA High Street Banking statistics are the first set of borrowing figures gathered since the EU referendum. The data does not currently suggest borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many borrowing decisions will also have been taken before the referendum vote.”
“We are also clearly still a nation of shoppers and the Brexit vote has done nothing to change the fact that we use credit cards for short-term purchases. Strong retail sales figures appear closely associated with strong consumer credit growth. Businesses also appear to be borrowing as usual: the upward trend that characterised the first few months of this year is continuing. June’s data looks like a blip, probably caused by pre-Brexit nervousness. But it is too early to tell how the data over the next few months will reflect the result of the decision to leave the EU.”
