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Gross mortgage borrowing remains strong

Gross mortgage borrowing remains strong

Category: Mortgages

Updated: 23/07/2013
First Published: 23/07/2013

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 It is now over 6 months old so the content may be out of date.

Total gross lending to mortgage borrowers remained above the six-month average during June this year, as buyers continued to take advantage of low mortgage rates and wider credit availability.

According to figures published by the British Bankers' Association (BBA), mortgage lenders issued a total of £8.9 billion to borrowers last month, up from £8.7 billion in May and higher than the six month average of £8.1 billion.

The number of successfully approved home loans also increased during June, with a total of 66,917 cases approved, 37,278 of which were for house purchase mortgages.

Approvals for remortgage loans dipped slightly on a monthly basis from 20,670 in May to 20,478, although numbers remained above the six-month average of 18,062.

In other areas of personal finance, new borrowing on credit cards, personal loans and overdrafts increased month-on-month as the UK holiday season began to take effect and consumers turned to their cards to help finance extra expenditure.

Some good news also emerged in the savings world, as investors placed a higher volume of savings with banks. Total deposits held with banks grew monthly by 5.2%.

BBA statistics director, David Dooks, said: "Second quarter GDP is expected to have strengthened and as economic conditions improve the banks are providing the finance to help growth.

"In June, £9 billion of new mortgages and a small rise in consumer credit were accompanied by a net increase in lending to businesses."

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