Weak mortgage lending continues

| July 27, 2011
a�?Weak

Annual growth in banksa�� gross mortgage lending stood at A?7.6 billion in June, with the figure 11% lower than a year earlier, according to the British Bankers’ Association (BBA).

Early signs of growth in the buy-to-let market were evident but both house purchase and remortgaging approvals continued to be weak, and with repayments still at a fairly high level, net mortgage lending increased by only A?0.5 billion in June.

House purchase approvals were slightly higher than in May but 6% lower than in June 2010, and at A?149,700, the average value of an approval was down 0.6% year-on-year.

The number of remortgage approvals in June was in line with the recent average, as expectations of interest rate rises in the near-term continued to recede, and approvals for equity withdrawal remained subdued but stable.

BBA statistics director, David Dooks says: a�?Banks continue to lend for house purchase but the weak mortgage market is self-evident.”

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