Net Mortgage Borrowing Slightly Falls to £3.6 Billion in December

Source: Bank of England

Net borrowing of the mortgage debt by individuals slid to £3.6 billion in December, from £3.8 billion in November. FTSE 100 up +1.08%, GBP USD up +0.30%

• Mortgage approvals for house purchases increased to 71,000 in December, higher than the 12-month average to February 2020 of 66,700.
• Consumers borrowed £0.8 billion more in consumer credit on the net—the effective rate on new personal loans dropped by 16 basis points to 6.27% in December.
• Sterling money remained fairly the same in December, a drop from a £14.1 billion increase in November. 
• Households’ holdings of money deteriorated, with net flows of £2.7 billion compared with £5.1 billion in November.
• The effective interest rate paid on individuals’ new time deposits with commercial banks and building societies dropped to 0.36%.
• Large businesses borrowing from banks dropped to £0.3 billion in December as small and medium-sized businesses repaid £0.6 billion.
• Private non-financial companies (PNFCs) redeemed £3.2 billion in net finance from the capital markets.