The Bank of England: Money and Credit Release

The Bank of England: Money and Credit Release

The Bank of England had published their Money and Credit this morning. The monthly Money and Credit statistical release is made up of three parts that include broad money and credit: aggregate, sectoral and industrial detail within part one. Next is part two which includes lending to individuals: lending secured on dwellings and consumer credit, followed by part three which includes, lending to businesses: net finance raised and loans to businesses, split by size of business.

Octane Capital’s CEO, Jonathan Samuels comments: “This latest report from Threadneedle Street underlines the continued resilience of the UK property market.”

“This latest report from Threadneedle Street underlines the continued resilience of the UK property market. It’s by no means firing on all cylinders but equally the property market has not fallen flat on its face. Transaction levels are down and the market has without doubt cooled, but there is still demand. A combination of ultra-competitive mortgage rates and high employment levels is injecting a degree of fluidity into the property market. It’s keeping it alive. Rising inflation has the potential to weaken demand, as people increasingly feel the pinch, and the economy is hardly on a firm economic footing given the uncertainty surrounding Brexit. To protect themselves against rising living costs, and the threat of interest rate hikes, many households are clearly choosing to remortgage. With mortgage rates, as low as they are, it’s no surprise. You suspect the property market will continue in much the same vein for the rest of the year. Steady rather than scintillating.”

Alistair McKee, Managing Director of the UK wide independent mortgage broker, One 77 Mortgages comments, “There’s life in the old dog yet as canny homeowners continue to lock in cheap deals while they can before the spectre of interest rate rises looms.”

“What is encouraging is that new mortgage approvals are not tailing off but putting in a surprisingly upbeat performance in the face of some pretty intimidating headwinds. Don’t forget that annual UK house market growth has more than halved in a year, transaction levels have been dropping, business investment is down and retail sales growth slowed at the fastest pace in over a year last month. Borrowers don’t seem to be paying any of that much attention and first time buyers could be driving a lot of this traction. They won’t want to miss the party and will be keen to take advantage of low rates themselves. However, new approvals are unlikely to be to blame for swollen stamp duty receipts confirmed this week. In fact, that’s more likely to be explained to some degree by the stamp duty surcharge on second homes.”

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