In reference to Lending levels in UK slow, data from banking industry shows by William Schomberg and Elizabeth Piper on 27 June 2017 in the Irish Examiner.
In the UK, borrowing has been at its slowest growth rate in over a year and a half. Banks have also been offering fewer mortgages which may be a sign of an economic slowdown in Britain.
The numbers are not lying. In one month’s time, consumer lending growth went from 6.4 percent in April to 5.1 percent in May. British Bankers’ Association naming it the weakest increase since October 2015. Mortgages went down from 40,686 to 40,347 in May which has been the smallest amount of mortgages since September.
Could this be a result from Brexit?
Since Brexit started, tension has been rising in Britain. The wage growth has been slowing down along with rising inflation. It may be hard for the British to make a huge financial commitment, like a mortgage, with the uncertainty of the future.
Not only with mortgages, the statistics have been representing a lower amount of spending across the board with consumers. Credit growth in cards, overdrafts and personal loans have all went down.
Not only are residential borrowing rates are down but also business rates as well. This could be companies being cautious about the huge political change in the United Kingdom before making huge financial decisions.
The Brexit has been very influential this past year since it has passed. The news of Brexit passing affected world markets, even mortgage markets. As negotiations of the Brexit continue, consumers and companies alike have been tightening their belt waiting for how this is going to affect the economy. As we see their economy slowing, being the neighbor of the UK, some of the results of Brexit might affect Ireland especially with financial markets and trading.