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UK gross mortgage borrowing totalled £12.6bn

Staff Writer |
UK banks increased lending levels in December, though demand is expected to soften in 2017 as consumers and businesses anticipate higher interest rates.

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The British Bankers' Association revealed that gross mortgage borrowing totalled £12.6bn in December, up 3.6% from the same month last year and 3.3% from November's £12.2bn.

Net mortgage borrowing grew by 2.5% year-on-year, with remortgaging approvals up 30% and at their highest level since October 2008.

consumer credit grew 6.6% despite weak retail sales as growth in personal loans remains supported by low interest rates.

Business borrowing declined £2.8bn to £261.7bn, which the BBA said was mainly due to seasonal reductions in demand from the construction and agriculture sectors.

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