Mortgage approvals nudge ahead

| August 23, 2011 | 0 Comments
Mortgage approvals nudge ahead

The UK’s High Street banks approved 74,590 mortgages in July, with the figure up from 71,521 in June and ahead of the previous six-month average (69,803).

According to the British Bankers’ Association (BBA) house purchase approvals came in at 33,417, activity having gathered pace since June (32,123) and exceeded the previous six-month average (30,695).

At £151,500, the value of the typical house purchase loan was 2% higher than a year earlier.

Remortgaging followed a similar pattern with July approvals at 26,043 (June: 24,311; six-month average: 23,921) and reports suggesting a surge in activity from the buy-to-let sector.

However, gross mortgage lending of £7.6 billion was 8% lower than a year earlier and with repayments continuing at fairly high level, net mortgage lending increased by just £0.9 billion, in line with the previous six-month average.

Commenting on the data, the BBA statistics director, David Dooks said weak demand for borrowing generally reflected slow growth in the economy.

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