Mortgage lending continues to make headway
In May, net mortgage lending by Britain’s High Street banks grew to £2.6 billion, compared with £1.9 billion in April.
Annual growth in net lending (gross lending with repayments and redemptions stripped out) stood at 4.3%, unchanged from April, according to the British Bankers’ Association, while May’s gross mortgage lending of £9 billion was in line with the previous six month average.
Repayments continued to be stronger than usual as banks and money advisers encouraged borrowers to use surplus cash to reduce their borrowing where possible.
A total of 36,709 loans were approved for house purchases, up from 35,729 in April, with the average value of a house purchase approval 10.5% higher than a year ago, at £150,500.
Banks are currently providing over 70% of mortgage approvals for house purchase, compared with around 55% three years ago.
Numbers of remortgaging and equity withdrawal approvals continue to be lower than a year earlier, although remortgaging still accounted for 24,626 approvals in May.