UK Finance's latest Lending Update, released today, shows a healthy mortgage market in a traditionally quiet month

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1 Release Date : 25 January 218 Lending Update - December 217 UK Finance's latest Lending Update, released today, shows a healthy mortgage market in a traditionally quiet month Key data highlights: Gross mortgage lending in December is estimated to have been 22bn, 12 per cent more than a year earlier Total gross mortgage lending in 217 of 2561bn was 4 per cent more than in 216, although approval activity in the final quarter was 3 per cent lower than in the comparable quarter of 216 Year-end consumer spending was reflected in the use of credit cards, rather than loans or overdrafts, with outstanding levels of card borrowing having grown by 53 per cent over the year Business deposits grew by 61 per cent in 217, while borrowing from high street banks was modest through 217, expanding by only 12 per cent Within business sectors, manufacturers' borrowing expanded modestly, while construction and property-related sectors contracted Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance said: December is traditionally a quieter month for mortgages, although the underlying trend of increased numbers of first time buyers, supported by government initiatives such as Help to Buy, continues Mortgage s remain low, driven by a competitive market, so customers should shop around for the best deals Business lending is up year-on-year, even though December saw the usual seasonal net repayment across all industries and sizes of borrower However, healthy export levels and an uptick in overall business confidence suggest that in this New Year, there may be an appetite to capitalise on opportunities for supported by continued favourable borrowing conditions Notes to Editors 1 For more information please call the UK Finance Press Office on or press@ukfinanceorguk 2 3 UK Finance is the trade association formed on 1 July 217 to represent the finance and banking industry operating in the UK It represents around 3 firms in the UK providing credit, banking, markets and payment-related services The organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association ' data reflect around two-thirds of all UK retail banking, while full market data are either estimated by UK Finance or published by the Bank of England Next update: 26 February 218

2 Release Date : 25 January 218 Household borrowing 12% Full market - mortgages in amounts outstanding Rates reflect underlying 12- month trends, compiled on a comparable basis 1% 8% 6% 4% 2% Full market - consumer credit - mortgages 29% % - consumer credit 7% Mortgages Gross mortgage lending Value of new residential mortgage loans for home purchase, remortgaging or other purposes, secured by a first charge on the property 3, 25, 2, 15, 1, 5, Full market 22 bn 12% 126 bn -7% Mortgage approvals Number of new residential mortgage loans approved by high street banks for home purchase, remortgaging with a different lender or for other purposes, less cancellations Approvals are a forward indicator of lending in future months number 1, 8, 6, 4, 2, Other secured lending 6,95-22% Remortgaging 21,92-146% House purchase 24,84-212% Consumer credit 2, Credit card spending Value of world-wide credit card transactions by UK cardholders using cards issued by UK banks, building societies or non-bank credit providers 15, 1, 5, Full market 11 bn 53% 3, 2,5 Gross personal loans Value of new personal loans provided by high street banks 2, 1,5 1, 11 bn -176% 5

3 7,5 Overdrafts Sterling amounts outstanding on personal current account overdrafts with high street banks 7, 6,5 6, 65 bn -29% 5,5 Personal deposits & savings total sterling deposits held in personal current and savings accounts 9, 8454 bn 21% 6, Personal deposits of which immediate access without penalty 6361 bn 53% 3, of which requiring notice or available on maturity 293 bn -66% 3, 25, Full market ISAs Cash deposits held in Individual Savings Accounts 2, 15, 1, 1571 bn -43% Business finance 27, Loans & overdrafts Sterling loan & overdraft lending amounts outstanding on business accounts with high street banks 26, 2656 bn 12% 25, 36, Business deposits Total sterling deposits held in UK business accounts with high street banks 34, 32, 3691 bn 61% 3, Next update: 26 February 218

4 Release Date : 25 January 218 Mortgages Gross mortgage lending Full market 19,957 19,964 18,114 2,983 18,47 2,435 23,48 22,637 24,156 21,512 23,794 23,198 2,2 12,679 12,824 11,95 13,4 1,952 12,473 14,638 14,114 15,142 13,672 15,287 15,76 12,593 HSB BOE/ est House purchase 31,515 3,226 37,124 48,925 39,91 47,352 49,527 44,24 44,474 41,529 43,76 41,289 24,84 HP Mortgage approvals Remortgaging 25,681 23,844 23,695 28,895 21,91 26,838 28,832 27,514 29,736 29,899 38,746 38,574 21,92 R Other loans 7,13 8,1 8,969 1,276 8,197 9,782 1,2 1,218 9,723 9,55 9,749 9,783 6,95 OL in mortgage amounts outstanding Full market 3% 3% 3% 27% 29% 3% 3% 31% 32% 32% 32% 33% BOE 25% 24% 25% 22% 24% 24% 26% 25% 26% 27% 28% 28% 29% Growth Consumer credit in consumer credit Full market 16% 15% 15% 12% 14% 14% 1% 99% 1% 98% 95% 91% BOE 31% 31% 29% 24% 29% 21% 18% 19% 14% 14% 8% 8% 7% Growth Credit card spending Full market 16,428 15,911 14,238 15,927 14,973 16,898 16,47 16,61 15,49 15,69 16,623 17,252 - BOE 1,25 9,83 8,827 9,867 9,276 1,46 9,899 1,277 1,118 9,65 1,88 1,483 1,82 HSB in credit card credit amounts outstanding Full market 87% 86% 93% 89% 97% 91% 9% 89% 89% 92% 86% 88% BOE 54% 53% 61% 53% 64% 55% 55% 53% 5% 55% 5% 53% 53% Growth Gross personal loans 1,378 2,36 1,848 2,414 1,473 1,578 1,57 1,559 1,616 1,548 1,54 1,557 1,136 HSB Net Overdrafts 6,736 6,844 6,645 6,444 6,245 6,762 6,52 6,734 6,791 6,44 6,75 6,534 6,538 O/S Net 46,47 47,22 46,964 47,45 46,961 47,227 46,812 46,828 46,717 46,1 46,87 45,654 45,191 O/S in loan & overdraft amounts outstanding Net Full market 117% 116% 111% 11% 18% 11% 16% 14% 15% 12% 1% 93% BOE 1% 13% 2% -1% -1% -9% -14% -1% -18% -22% -28% -32% -35% Growth

5 Personal deposits & savings Personal deposits 828,17 818, ,832 83,76 833,46 828, , , ,986 84,96 838, , ,361 O/S of which instant access of which notice or time 64, ,312 62,127 61, ,121 68, ,78 616, , , ,23 63,47 636,13 O/S 223, ,862 22,74 22, , , ,28 216, , ,789 21,494 29,22 29,258 O/S 41% 4% 4% 34% 27% 26% 25% 22% 22% 2% 2% 21% 21% Growth ISAs (included above) Full market 269, , , , , , , , ,5 271, ,171 27,496 BOE 164,11 163, ,35 163,88 165, ,52 163, , ,352 16, , , ,11 O/S Business finance 261, , , , , ,31 265, , , , , ,44 265,645 O/S Loan & overdraft amounts -2,788 3,388-1,615 3, , ,76 Net 23% 21% 9% 36% 29% 28% 31% 21% 19% 2% 7% 6% 12% Growth 342, ,33 334, ,37 338,862 35,1 358, , , , ,67 371, ,117 O/S Deposits 2,452-7, ,146-4,175 11,138 8, ,763-5,717 2,84 6,33-2,856 Net 33% 3% 4% 42% 43% 61% 61% 75% 82% 58% 58% 76% 61% Growth reflect around two-thirds of all UK retail banking and data above relate to the banking groups of Barclays, Lloyds, HSBC, RBS, Santander UK, TSB and Virgin Money Gross mortgage lending reflects the total value of newly advanced loans secured on dwellings by all mortgage lenders and is estimated for the latest month by UK Finance - earlier figures are sourced from the Bank of England Full market data for some series are sourced from the Bank of England but data for the latest month are not yet published s are adjusted to exclude the effects of population changes, write-offs and sales/purchases of loan books, to reflect underlying business trends where appropriate and are based on seasonally adjusted data, while all other data series are non-seasonally adjusted Year-on-year percentage changes compare the latest month's figure with the same month's figure in the previous year Data series for personal and business lending or deposits relate to sterling lending to, and deposits from, UK residents Extended data tables are available from our website wwwukfinanceorguk/statistics/ For more information please call the UK Finance Press Office on or press@ukfinanceorguk Next update: 26 February 218