Mortgage activity remains strong in May - Mortgages - News - Moneyfacts


Mortgage activity remains strong in May

Mortgage activity remains strong in May

Category: Mortgages

Updated: 25/06/2013
First Published: 25/06/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The mortgage market showed further signs of recovery last month as approval levels and borrowing figures continued to climb.

According to new data released by the British Bankers' Association (BBA), lenders advanced a gross total of £8.6 billion to borrowers during May, compared with £8.1 billion in April 2013.

A higher number of applicants were successful in getting their mortgage applications signed off last month, with 65,752 purchase and remortgage approvals carried out at a total value of £8.9 billion.

On an annul basis, approval levels for house purchase applications rose by 24%, whilst 20,675 remortgage cases were approved reflecting a 17% rise from the same month in 2012. Increased numbers of approved mortgages saw the overall seasonal average advance value rise to £159,200, £3,000 higher than in April 2013.

In other areas of consumer finance, new spending on credit cards reached £7.8 billion during May, up from £7.6 billion the previous month, with consumers making over 122 million purchases on their cards.

Despite a rise in credit card borrowing, the value of new personal loans taken out last month remained at £1.3 billion.

Commenting on the findings, David Dooks, BBA statistics director, said: "New mortgage borrowing from the high street banks strengthened in May and approvals for both house purchase and remortgaging continued to rise.

"Unsecured consumer borrowing also saw a small net rise overall, in line with improved retail sales volumes."

What next?

Mortgage Calculator
Loan Calculator - Compare loan repayments and interest with our easy-to-use loan calculator
Credit Card Search – find the best credit card for you

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.