- Mortgage activity has been building through the year, helped by increasing numbers of first-time buyers. Gross mortgage lending in the month is estimated to have been £20.2 billion, 1.2 percent more than a year earlier.
- Credit card spending decreased slightly in the month, with annual growth in outstanding credit at 5.3 percent.
- Business borrowing has continued to moderate through the year, with the manufacturing sector showing only modest annual growth, while construction and property-related sectors have contracted their bank borrowing over the year.
Commenting on the data Eric Leenders, Managing Director of Personal Finance at UK Finance said “December is traditionally a quieter month for mortgages, although the underlying trend of increased numbers of first-time buyers, supported by government initiatives such as Help to Buy, continues. Mortgage rates remain low, driven by a competitive market, so customers should shop around for the best deals.”
“Business lending is up year-on-year, even though December saw the usual seasonal net repayment across all industries and sizes of borrower. However, healthy export levels and an uptick in overall business confidence suggest that in this New Year, there may be an appetite to capitalise on opportunities for growth supported by continued favourable borrowing conditions.”