Mortgage lending registers slight increase - Mortgages - News - Moneyfacts

News

Mortgage lending registers slight increase

Mortgage lending registers slight increase

Category: Mortgages

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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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."

Find the best mortgage for you - compare Mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.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

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!
 
Close