Net mortgage borrowing by households reached £4.3bn in October which was up £0.4bn from September, new statistics from the Bank of England (BoE) revealed.
The BoE said the recent stability in the monthly flows had left the annual growth rate unchanged at 3.2%, close to the levels seen during the past three years.
Mortgage approvals for house purchase, which the BoE suggested is an indicator for future lending, fell slightly in October, to 65,000, but remained within the narrow range seen over the past two years. Mortgage approvals for remortgage strengthened during the month to 51,000.
The BoE also announced that the net flow of consumer credit was £1.3bn in October, above the £1.1bn average since July 2018, and that UK businesses made net repayments of £0.9bn of finance in October, driven by a weakening in borrowing from both banks and financial markets.
Commenting on the BoE’s latest statistical release, Sanlam UK chief investment officer, Phil Smeaton, said: “The BoE remains accommodative, but it is clear that there has been a levelling out of money indicators.
“Interest rates are still low but credit is yet to expand as hoped and the expected boost in investment required to up-shift into a post-Brexit environment remains elusive.
“Once the results of the election are revealed, we will receive clarity around future fiscal stimuli and investment spending. If a majority is secured in parliament, we can expect investment, which has been weak, to bounce back as we ride a wave of increased confidence and stability.”
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