The latest analysis from BBA has revealed that, during February, mortgage approvals slipped by 3.5% against January’s figures and remortgaging approvals were “well down” when also compared to the previous month.
Remortgaging approvals totalled 25,414 in February compared to the 28,088 approved in January and 25,484 in February 2016.
According to BBA, house purchase approval numbers of 42,613 were 4.6% lower than in February 2016 but above the 2016 monthly average of 41,287. The data also revealed that gross mortgage borrowing of £13.4bn in February was 4.6% higher than in the same month last year.
After allowing for repayments, February’s net mortgage borrowing was 2.5% higher than in February 2016.
Eric Leenders, BBA Managing Director for Retail Banking said: “Elevated approval volumes for house purchases and remortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year. Consumers’ use of credit cards and personal loans reflect last month’s increased spending figures.
Businesses continue to exercise a cautious approach to borrowing, using cash reserves and alternative lending sources to finance their operations.”