A report from the British Banking Association revealed optimistic news for the mortgage broker and the overall mortgage market,
with net lending from Banks in October showing an increase of 4 per cent compared to the same period last year however this was down to £8bn from the £8.4bn recorded in September.High street banks unexpectedly increased their number of mortgage approvals last month, with 76,042 mortgages approved in October up from the 73,334 recoded in September. The number of approvals of house purchases was also up from 33,502 in September to 35,295 demonstrating a rise of 5.4 per cent and a rise of 16 per cent higher than October 2010 figures.The number of re-mortgage approvals also rose to 35,295 approvals, illustrating a 2.4 increase from September and was only 3 per cent higher than the same time last year (October 2010). The slight improvement in both house purchases and re-mortgage approvals has led to the slightly stronger gross mortgage lending however capital repayment continued at a high level as households appear determined to repay existing loans at a rapid pace,which in turn has led to net mortgage lending only increasing by £0.9bn in October.David Dooks, statistics director at the BBA, said “The mortgage market, where the high street banks provide around 70% of new lending, remains subdued and demand for unsecured borrowing is slow, reflecting households’ caution in the current economic environment.”A report from the British Banking Association revealed optimistic news for the mortgage broker and the overall mortgage market, with net lending from Banks in October showing an increase of 4 per cent compared to the same period last year however this was down to £8bn from the £8.4bn recorded in September.
High street banks unexpectedly increased their number of mortgage approvals last month, with 76,042 mortgages approved in October up from the 73,334 recoded in September. The number of approvals of house purchases was also up from 33,502 in September to 35,295 demonstrating a rise of 5.4 per cent and a rise of 16 per cent higher than October 2010 figures.
The number of re-mortgage approvals also rose to 35,295 approvals, illustrating a 2.4 increase from September and was only 3 per cent higher than the same time last year (October 2010). The slight improvement in both house purchases and re-mortgage approvals has led to the slightly stronger gross mortgage lending however capital repayment continued at a high level as households appear determined to repay existing loans at a rapid pace,which in turn has led to net mortgage lending only increasing by £0.9bn in October.
David Dooks, statistics director at the BBA, said “The mortgage market, where the high street banks provide around 70% of new lending, remains subdued and demand for unsecured borrowing is slow, reflecting households’ caution in the current economic environment.”
