BoE: Money and Credit Statistics – December 2020

Industry News | 01/02/21

BoE monthly Money and Credit statistical release is made up of three parts: broad money and credit, lending to individual and lending to businesses.

Key points:
• Mortgage approvals for house purchase in 2020 (818,500) were higher than in 2019 (789,100), notwithstanding house purchase approvals hitting a record low of 9,400 in May 2020.
• Net mortgage borrowing remained strong at £5.6 billion in December. Effective interest rates on new mortgage borrowing rose to 1.90%, the highest since October 2019.
• Consumer credit was weak in 2020, with individuals making net repayments of £16.6 billion. Effective rates on new personal loans was 5.38% in December.
• Private non-financial companies borrowed £1.6 billion from capital markets in December, resulting in a total of £52.6 billion borrowing in 2020, well above £7.4 billion in 2019.
• Net bank borrowing by small and medium sized businesses was a record £43.3 billion in 2020 compared to £1.4 billion in 2019. Large businesses made net repayments of £5.8 billion in 2020 compared to net borrowing of £13.8 billion in 2019.
• Household deposits increased by £20.9 billion in December, the strongest since May. Business deposit flows strengthened at £15.8 billion. Deposit interest rates remained at historically low levels.