Major hike reported in mortgage borrowing
Mortgage borrowing recorded its biggest jump in five years last month as people rushed to put their money in bricks and mortar, high street banks have reported.
Figures from the British Bankers' Association (BBA) showed a £2bn net increase in mortgage borrowing in August, marking the highest monthly rise since August 2010.
The BBA said the number of mortgage approvals in August was 23% higher than a year ago, while remortgaging was up by 38% and stood at its highest level for four years.
With recent speculation about interest rate rises, and many attractive mortgage deals still on the market, "shrewd home owners" are looking to lock into fixed rates to control their mortgage costs, the report said. Richard Woolhouse, chief economist at the BBA, said: "People are putting their money into bricks and mortar while interest rates are low."
The BBA figures mirror separate Council of Mortgage Lenders figures last week.