Mortgage approvals nudge ahead

| August 23, 2011
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 A?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 A?7.6 billion was 8% lower than a year earlier and with repayments continuing at fairly high level, net mortgage lending increased by just A?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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