Mortgage lending rises in September says BBA

Posted: 27 Oct 2006 10:40:08 GMT

Mortgage lending continued to rise over the course of September, new British Banker Association (BBA) figures have shown, with a three per cent rise in approvals on August

Mortgage lending continued to rise over the course of September, new British Banker Association (BBA) figures have shown, with a three per cent rise in approvals on August.

The overall value of mortgages approved also increased 11 per cent on August figures, with 183,090 mortgages worth £19.3 billion approved over the month.

The average value of individual loans also grew to £140,400, an eight per cent increase on September 2005.

"Mortgage approvals statistics from the BBA provide further evidence that the housing market has shrugged off the August interest rate rise, with demand being buoyed by a stronger economy," said Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors (Rics).

"House price rises are likely to continue at a firm pace in the months ahead though an expected interest rate rise in November will take some steam out of the market."

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