Mortgage lending 'strong' over festive period

Posted: 29 Jan 2007 15:26:26 GMT

Mortgage lending was 'strong' during the festive period, according to new data from the British Bankers Association.

Mortgage lending was 'strong' during the festive period, according to new data from the British Bankers Association.

Traditionally, mortgage lending slows during December, but there was a seven per cent rise in the number of mortgages being taken out during the final month of 2006 compared to December 2007.

Some £18.1 billion worth of mortgage loans were taken out last month, across a total of 123,518 mortgages – with an average value of £146,400.

According to David Brooks, director of statistics at British Bankers Association: "The final quarter of last year, despite seasonally lower activity in December, showed the mortgage market to be stronger than at the same time a year earlier and lending still growing significantly at a time of rising interest rates."

Over 2006 as a whole, mortgage approvals were 11 per cent higher in value than in 2005.

This was despite two interest rate rises from the Bank of England in August and November.


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