Big banks see rise in loan numbers, BBA reveals

The number of mortgages taken out by customers of the UK's big banks has jumped 15% year-on-year, the British Bankers' Association (BBA) revealed on Tuesday.The data showed that gross mortgage borrowing totalled £11.1bn and that although approval processes were temporarily disrupted by the implementation of the mortgage market review earlier in the year, recent figures indicated a stable overall picture of approval numbers.Approvals for house purchases rose 5%, although the association pointed out that year-on-year comparisons have seen a slowdown in recent months, with re-mortgaging and equity release below last year's figures.Meanwhile, credit card spending was flat compared to August last year and that while repayments generally exceeded spending, annual growth has moderated.The BBA explained that higher unsecured loan demand continued to reflect growing consumer confidence and improving household finances.BBA statistics director David Dooks said: "When customers feel more optimistic about the economic outlook they are much more likely to take on new borrowing."Today's figures show that mortgage lending in August was up 15% on last year and that credit card spending remains robust. But I was particularly struck that after years of decline demand for unsecured personal loans is rising quite strongly again."Those products are often used to finance bigger purchase such as cars or major home improvements – the sort of spending we often put off until we feel confident about our financial circumstances."The data reflects figures taken from 21 UK institutions.