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Mortgage lending up steadily

Mortgage lending up steadily

Category: Mortgages

Updated: 24/06/2009
First Published: 24/06/2009

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 It is now over 6 months old so the content may be out of date.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 approvals by banks continued to increase in May, with the steady monthly rises witnessed since last November seeing the number of loans approved for house purchase recover to levels last seen in early 2008.

However, net mortgage lending of £2.3 billion represented the weakest monthly rise since early 2001, falling from £2.5 billion the previous month, figures from the British Bankers' Association (BBA) show.

Meanwhile, personal deposit inflows continued to be weak, recording a monthly rise of just £0.5 billion compared with £1.2 billion a month earlier, while consumer credit growth was minimal.

Lending to financial companies rose marginally while lending to non-financial companies was little changed overall.

The association also said that, while the number of approvals for remortgaging was lower than they were a year ago, the rate of decline seems to be stabilising.

"Unlike much of the mortgage market, the high street banks are still seeing lending growth and improved mortgage availability is reflected in higher average loan approval values," said BBA statistics director David Dooks.

"Consumers' borrowing appetite remains weak, reflecting uncertainty over household circumstances, so credit growth is negligible and spending activity on credit cards is down on this time last year."

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