Mortgage lending hits record despite fall in approvals
Published On 30 January 2007
Mortgage lending has broken recent records despite a recent fall in approvals, according to new official data.In December 2006, mortgage lending achieved its highest gain since records began in 1993.
The increase in the total net lending to individuals rose £11.2 billion in November to £11.6 billion in December.
This figure was higher than the previous six month average.
The three month annualised growth rate in mortgage lending increased from 10.9 to 11.3 per cent, meanwhile.
However, approvals for new mortgages showed their smallest rise since April.
The number of loans for purchase (113,000), remortgaging (100,000) and other purposes (77,000) all dropped from November.
These figures suggest that, although there was a strong housing market in December, the Bank of England's three rate rises since August 2006 are now starting to have a sobering impact.
