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Lending round-up

Lending round-up

Category: Mortgages

Updated: 02/06/2009
First Published: 02/06/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Mortgage approvals increased in April, says the Bank of England, while lending from building societies has stabilised.

Gross mortgage lending has stabilised on a month-by-month basis, according to the Building Society's Association (BSA).

While still well down on last year, a total of £1,551 million was lent to consumers in home loans in April, compared to £1,571 million in March.

In April 2008, a gross total of £3,921 million was lent. Commenting on the figures, Paul Broadhead, head of mortgage policy at the BSA, said gross lending was still 60 per cent lower than in April a year earlier.

"Although also at low levels, building society mortgage approvals were 14 per cent higher in April than in March, after adjusting seasonal factors. Therefore, the rate of decline in activity in the housing market may have started to slow, but overall the lending environment remains very challenging," he added.

Figures from the Bank of England show that total net increase in lending to individuals in April totalled £1.3 billion, almost double the 0.7 billion rise in March, but down on the six month average increase of £1.4 billion.

The 12 month growth rate fell again, by 0.3 percentage points to 1.8 per cent, but the three month annualised growth rate went up by 0.1 percentage points to 1.0 per cent.

Net lending secured on property increased by £1.0 billion, higher than the March increase, while the number of loans for house purchases also went up (by 43,201), topping March increases and the six month average.

Consumer credit levels increased by a net £0.3 billion, but fell below the six month increase average. credit card lending performed identically.

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