Net mortgage lending by the main High Street banks fell by 0.4bn pounds in January, according to the British Banker’s Association (BBA) to 777.4bn pounds.

That was the result of inclement weather and an increased rate of capital repayments.

The latter rose to £8.2bn versus £8.1bn in the month before and an average of £7.6bn over the previous six months.

The number of mortgages approved, meantime, decreased to 57,057 from 61,204 in December.

Net consumer credit borrowing slipped by £0.1bn to stand at £79.4bn.

Net personal deposits rose by £3.8bn to £694.2bn.

Net borrowing by non-financial businesses diminished by £0.2bn to stand at £288.2bn.

Net borrowing by financial businesses diminished by £7.8bn to stand at £342.8bn.

Commenting on the above data, BBA statistics director, David Dooks said: ‘January’s severe weather impacted adversely on what was already a subdued picture of borrowing demand from households and businesses. While general economic growth stalls, low consumer and business confidence generates a natural tendency to restrain borrowing appetite, repay borrowing where possible and to build up cash and savings as a buffer.’

AB