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Mortgage lending registers slight increase

Mortgage lending registers slight increase

Category: Mortgages

Updated: 29/12/2009
First Published: 29/12/2009

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 It is now over 6 months old so the content may be out of date.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 lending continued to hold up during November, although the take up of consumer credit registered a fall as consumers concentrate on paying off their debts and saving.

There were 44,713 mortgage approvals last month – the same level as seen two years ago – worth £3.3 billion, an increase on last month's figure of £3.2 billion and above the six month average of £2.7 billion, figures from the British Bankers' Association found.

By contrast, remortgaging levels are now two-thirds down on two years ago.

In the business world, loans to corporate sector declined, although those to financial companies registered a slight increase.

Consumer credit fell by 2.2 per cent in the month.

"Household priorities are showing up in the November figures. Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances," said BBA statistics director, David Dooks.

"In the housing sector, prices have continued to edge up and approvals for house purchase are now back at a similar level to that of two years ago.

"Remortgaging activity continues to run at a low level as borrowers revert to low standard variable rates or trackers from maturing fixed rate loans.

"Lending to non-financial companies ticked up slightly in November, having declined in each of the previous two months."

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