Banks see borrowing and lending pick up

The UK’s main banks saw borrowing and saving by customers pick up during 2014, according to the British Bankers’ Association (BBA).

Deposits into Individual Savings Accounts (ISAs) increased by 57% during last year, with experts believing this is due to the new £15,000 saving limit.

Borrowing by customers also rose by 3.8% during 2014, marking the fastest growth rate since 2008.

Spending on credit cards also saw an increase of 4% during the same period, the BBA figures show.

The BBA’s chief economist, Richard Woolhouse said: “Robust employment data is making many of us feel more secure in our jobs and optimistic about our futures.

“That’s now feeding through to personal lending and credit card data, suggesting people are happy to finally replace the car or spend on household improvements.

“The mortgage market has been softening since the spring, but for customers taking out home loans right now there are some great deals and we expect the market to begin to grow again this year.”

Towards the end of 2014, mortgage lending cooled down but experts claimed this was in-line with a general trend seen in previous years.

However, mortgage lending by big banking providers rose by 18% during the year to £130 billion and the number of new mortgages being approved also saw a rise of 9%.

If you’re looking to save money, compare ISAs from a wide range of interest rates and providers.

Source: BBC News 

Naomi Havergal
Tuesday 27th January 2015

Category: BankingMoney

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