UK Businesses Borrow Record Amount In March
According to the Bank Of England’s Money and Credit – March 2020 document that it published on the 1st May 2020, a record amount was advanced in the form of bank loans in March 2020 to UK businesses. The amount of new lending by way of bank loans totalled £34.1 billion. This is a dramatic increase when compared with previous figures and no doubt a significant amount was due to the Coronavirus pandemic.
As a result of this, the annual growth rate of lending to businesses in the UK stood at 8.2%. The lending growth rate amongst SMEs increased from 0.9% in February 2020 to 1.2% in March 2020. The growth of large business lending rose significantly to 11.8%.
On a positive note, there were drops seen in the interest rate paid by businesses on new lending here in the UK in March 2020.
Interestingly, deposits amongst UK businesses went up by £34.0 billion in March 2020.
It will not come as a surprise to anybody to read that the number of mortgages that were approved in March 2020 to buy homes dropped to only 56,200. This figure is the lowest that has been seen since March 2013. Variable interest rates on residential mortgages fell but the interest rate charged for fixed rate mortgages did not change by much in March 2020.
Another interesting statistic related to consumer credit. Apparently, the amount of net consumer credit repaid by households in March 2020 amounted to £3.8 billion.
If you are a business whether large or small and are looking for finance, why not get in touch with us and we will introduce you to a commercial mortgage broker that has an extensive panel of lenders at their disposal. The broker will do all that he or she can to assist in sourcing suitable finance at competitive rates and fees and should also be able to help you with the putting together of a suitable lending proposition.