Mortgage lending continues stunted growth

| June 2, 2010 | 0 Comments
”Mortgage

Net mortgage lending increased by £0.5 billion in April, according to Bank of England figures.

The growth rate for the month proved stronger than in March (£0.2 billion) but was below the previous six-month average of £1.3 billion.

The number of loan approvals for house purchase also showed some improvement at 49,871, compared with the March figure of 49,008, but remained well below the previous six-month average of 53,098.

Approvals for remortgaging fell to 26,295, from 27,825 in March, holding up against a previous six-month average of 26,203.

In related news, Moneyfacts.co.uk has recently reported that the average two-year fixed rate has fallen to 4.61%, its lowest level in 15 months.

Rates on the typical three and five-year fixed-rate deal are also down, to 5.30% and 5.74% respectively.

The financial website’s spokesperson, Darren Cook, comments: “Lenders are competing for a reducing amount of business and there is little incentive for borrowers to remortgage to another mortgage deal.”

According to Mr Cook, mortgage revert rates are currently as low as 2.50%.

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