BBA reports further fall in mortgage lending

| September 23, 2010
BBA reports further fall in mortgage lending

The British Bankers’ Association (BBA) has today revealed a further fall in the number of new mortgages approved by the major banks in August.

According to the BBA, mortgage approvals for the month stood at 31,767, down from 34,219 in July – representing the third consecutive monthly fall and the lowest since April 2009.

The BBA, whose members account for about two-thirds of mortgage lending, said mortgage approvals are also down 22.3% compared with August 2009.

David Dooks, BBA’s statistics director, comments: “Demand for mortgages continues to be weak despite more properties reportedly coming on to the market.

“Even with stable or falling house prices the current economic climate makes it unlikely that demand will pick up in the near future,” he added.

Earlier this week, the Council of Mortgage Lenders (CML) revealed gross mortgage lending fell 6% in August compared with the same month last year to £11.4 billion.

The CML said the figure was 14% lower compared with July and represented the lowest August monthly total since 2000, highlighting the ongoing sluggishness of the UK housing market.

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  1. Mike says:

    First-time buyers will continue to decline until lenders are able to respond with realistic deposit expectations. With the average deposit at ~£30,000 in the Southeast it’s not surprising mortgage applications have slumped.