News Article

Bank Lending

British Bankers Association, February Lending

By CreditMan Tuesday, March 25, 2014

Duncan Kreeger, director of West One Loans, the largest privately funded short-term secured lender in the UK, comments, “Mainstream finance is delivering in spades for those looking to buy property, but undermining those who can supply more property to feed the same demand. In many regions, house prices are 10% higher than twelve months ago, but lending to construction and real estate businesses is at least 10% lower.

“Comparisons to August 2008 are an important milestone, but don’t always show the whole picture. As mainstream lenders get back to their feet they are quite rightly reconsidering their business lending strategies. But alternative finance has already made a head start in the last five years, and is filling the gap left half a decade ago. We still urgently need more of the right properties in the right places, and that means supporting the right projects and the right businesses who can make it happen.”

British Bankers Association, February Lending
· Gross mortgage borrowing of £11.5bn in February was 47% higher than in the same month last year and 4.5% higher than in January 2014

· This represents the highest monthly gross mortgage lending since August 2008.

· Net business lending by members of the BBA to non-financial businesses was -£0.9 billion, down from -£0.3 billion in January.

· Business lending to manufacturers and wholesale & retail traders has seen positive annual growth over the past few months. However, lending to construction and real estate businesses has fallen.