Mortgage lending rises

Posted: 25 Feb 2008 11:11:03 GMT

Gross mortgage lending increased in January, according to the latest figures from the British Bankers' Association (BBA).

Gross mortgage lending increased in January, according to the latest figures from the British Bankers' Association (BBA).

The organisation has revealed that overall lending reached £18 billion in the month.

This is up on the £15.5 billion figure recorded in December and the £17.8 billion six-month average.

Strong remortgaging activity was cited as a major factor behind the rise in gross lending in the month.

"Higher gross mortgage lending in January largely reflected very strong remortgaging activity, as borrowers sought out the best deals available," commented David Dooks, BBA statistics director.

"Although house prices and new loans for house purchase, appear to be subdued as the housing market slows, the strength of remortgaging would suggest competition for mortgage business and switching remains high," he added.

Recent cuts to the base rate of interest are also thought to have helped to increase mortgage lending activity.

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