The BBA stats showed that net mortgage borrowing was 2.5% higher than a year ago, and that while December's mortgage approval numbers were slightly higher than those in the previous December, they were 4.1% lower on the year overall.
Remortgaging approvals were 30% higher than those in December 2015 and were at their highest level since October 2008. In the whole of 2016 remortgaging approvals were 15% higher than in 2015.
Other advances were 6.5% higher than a year ago and in 2016 were 18% higher than in 2015.
Dr Rebecca Harding, BBA Chief Economist, said:
“Overall, we’ve seen high levels of consumer and business borrowing, although there are early indications that 2017 could see softer demand for credit from business and households, as they anticipate future interest rate rises and wait for further clarity on Brexit.
“Consumer credit continued to be strong in December despite weaker retail sales.
“Re-mortgaging approvals were 30% higher than December 2015, reflecting borrowers’ desire to “lock in” lower interest rates ahead of a potential rise later this year.
“However, reduced demand for business borrowing may signal plans for investment are being deferred or funded through retained earnings until there is more certainty on the UK’s economic prospects after Brexit.”
