Net Mortgage Lending Increased In July

The annual growth in mortgage lending increased in July according to the latest figures from the British Bankers’ Association.

High street banks saw an increase in net mortgage lending in July as the annual growth rate rose to 4.1% compared to just 0.9% in June.

Net mortgage lending is the difference between the total amount loaned against the total amount repaid, so more was borrowed for house loans than repaid during the month and previous year.

Gross mortgage lending remained stable and demand for mortgages remains subdued in July. “The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals.”, BBA statistics director, David Dooks said.

The latest BBA report on high street bank activities also shows that personal deposits have continued to rise as consumers tighten their belts and boost their savings. Consumer credit repayments also increased as people attempt to pay down their credit card debts and other unsecured loans.

This points to continuing “pressure on household finances and job uncertainty while companies are tending to retrench and reduce their bank borrowing.”, David Dooks explained.