Mortgage lending on the up, BBA figures suggest

Posted: 24 Mar 2009 12:34:17 GMT

UK lenders have slowly started to increase the number of mortgages they approve, new research has indicated.

According to figures released today (March 24th) by the British Bankers Association (BBA), there was a net rise in mortgage lending to £3.9 billion in February.

This was up from £3.4 billion in the previous month and represents annual growth of 9.8 per cent, the organisation said.

David Dooks, statistics director for the BBA, said that the majority of this lending is being done by "high street banks".

He commented: "Remortgaging activity has slowed in recent months, while higher numbers of loans approved for house purchase simply reflect the banks' greater market share.

"In the wider consumer market, unsecured credit is very subdued and individuals' deposits are also weak, as people respond to the current interest rate climate."

Commenting on the figures, the Royal Institute of Chartered Surveyors said that the recent rise in buyer inquirers now appears to be converting into "actual transactions".

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