New mortgage lending still nudging ahead

| November 30, 2009 | 1 Comment

Figures from the Bank of England show the value of mortgages approved for house purchases rising for the 11th consecutive month in October, to £8 billion.

The total is up from £7.6 billion a month earlier and compares with a previous six month average of £6.7 billion.

Volumes increased to 57,345, up from 56,205 in September and 18% higher than a year ago.

However, approvals for remortgaging fell to 24,596, compared with a September figure of 25,425, and a previous six-month average 30,228.

The trend reflects borrowers coming to the end of fixed-rate deals choosing to stick with lenders’ relatively attractive standard variable rates.

In related news, the Building Societies Association (BSA) has reported that the value of mortgages approved by members fell to £1,511 million in October 2009, compared to £2,902 million a year earlier.

Commenting on the figures, BSA director general, Adrian Coles, said: “Modest improvements in the housing market have occurred in recent months, especially when compared to the start of the year, however lending still remains subdued compared to previous years.”

He added: “Funding conditions remain difficult and the supply of properties to the market is low … lending activity is likely to remain depressed until funding and supply conditions improve.”

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  1. oliver jones@buy to letmortgages says:

    Good to finally see new mortgage lending going in the right direction, financial services need a boost.

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