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Midsummer slump in mortgage lending

Midsummer slump in mortgage lending

Category: Mortgages

Updated: 25/09/2012
First Published: 25/09/2012

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Latest figures released by the British Bankers Association (BBA) reflect a continuingly sombre mortgage market with gross mortgage lending falling to £6.9 billon during August.

Total mortgage lending was much lower during August compared with the £7.1 billion recorded in July and below the six month average.

The dip in activity in the mortgage market defied the typically 'busier' midsummer house-hunting period.

The downturn in lending activity this summer is mainly thought to be due to continued uncertainty in the eurozone and UK economy, dissuading the vast majority of people from moving home and borrowing money. The less than favourable weather and the London 2012 Olympics also put house hunting on the back-burner for many people.

One small consolation for those persevering with the housing market is the slight monthly rise in the number of mortgages approved last month.

Approvals for house purchase borrowers rose from 28,750 to 30,533, whilst 17,558 remortgage applications were successfully approved compared to July's 15,895.

Overall mortgage approvals increased from 56,282 to 59,631.

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