Mortgage lending for UK properties 'rises'

Posted: 24 Jun 2010 10:55:30 GMT

The amount of money provided in the form of mortgages for UK house purchases has risen, it has been claimed.

According to the British Bankers' Association (BBA), the annual growth in net lending was 4.3 per cent in May.

This was higher than the 0.9 per cent annual growth recorded in April, the organisation pointed out.

Commenting on the figures, BBA statistics director David Dooks said: "High street banks are the main providers in the mortgage market, supplying 75 per cent of all new lending and approving more than 35,000 loans for house purchase each month."

He added that the low interest rate environment is resulting in consumers opting to reduce or pay off their borrowing, rather than saving money.

This month, the Bank of England's Monetary Policy Committee voted to keep the country's base rate of interest at its historical low of 0.5 per cent, although minutes from the meeting revealed that opinion on the subject was split.


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