Mortgage lending weakens
Published On 26 October 2006
Mortgage lending weakened considerably in September, according to figures released by the British Banker’s Association (BBA).The group's report found that gross mortgage lending was down to £17.9 billion last month, 14 per cent lower than in August, which was a record-breaking month.
However, this figure is slightly up on the £17.8 billion posted last September, although eight per cent fewer mortgages were approved.
David Dooks, BBA's director of statistics, commented: "Though September's net mortgage lending was below the high summer plateau, that is not necessarily a sign of the market moderating.
"While loans approved for remortgaging and equity withdrawal were weak by historical comparison, the numbers of loans approved for house purchase remained fairly robust and will support lending growth in the near-term."
Underlying net mortgage grew by £5.4 billion in September, down on August's £5.9 billion and the recent average of £5.6 billion.
