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November’s lending hits £8.2bn

Written by Joe Test on 23 December 2011.

Mortgage lenders increased its amount gross mortgage lending to £8.2 billion in November, slightly higher than the figure recorded in October. On an annual scale, this figure was 5 per cent higher than in the same period last year (November 2010).The British Banking association puts this figure down to a slight upturn to increases both house purchase and re-mortgage approvals, which has led to the slightly stronger gross mortgage lending within the general mortgage market and though us as a large London mortgage broker. However the BBA says capital repayments continues at a high level, which therefore has led to net mortgage lending only rising by only £0.3bn in November.The report illustrated, annual growth of the Bank’s net mortgage lending was 1.4 per cent compared with annual market growth of 0.6 per cent in October for mortgage lending by all lenders. Doubts over the global banking system were reflected by a contraction in the amount of unsecured credit, shrinking by 1.2 per cent over the past year. In the first eleven months of 2011, deposits and savings have increased by £15.8bn compared with £30bn in the same period of 2010. The BBA believed the incentive for holding bank deposits has given way to paying down debt and using cash for household expenditure.Statistics director at the British Banking Association, David Dooks says the gross lending statistics reported shows banks remain key to household finance provision. He added “But until there are clear signs of improvement in the economy and stability on the international front, households and businesses lack the confidence needed to seek credit for spending or investment. Stocks of bank lending therefore continue to be driven down, as repayments dominate over the absence of any material rise in borrowing demand.”November High Street Banking data report from the British Banker’s Association (BBA) reveals positive news for the mortgage broker and mortgage market. Mortgage lenders increased its amount gross mortgage lending to £8.2 billion in November, slightly higher than the figure recorded in October. On an annual scale, this figure was 5 per cent higher than in the same period last year (November 2010).

The British Banking association puts this figure down to a slight upturn to increases both house purchase and re-mortgage approvals, which has led to the slightly stronger gross mortgage lending within the general mortgage market and though us as a large London mortgage broker. However the BBA says capital repayments continues at a high level, which therefore has led to net mortgage lending only rising by only £0.3bn in November.

The report illustrated, annual growth of the Bank’s net mortgage lending was 1.4 per cent compared with annual market growth of 0.6 per cent in October for mortgage lending by all lenders. Doubts over the global banking system were reflected by a contraction in the amount of unsecured credit, shrinking by 1.2 per cent over the past year. In the first eleven months of 2011, deposits and savings have increased by £15.8bn compared with £30bn in the same period of 2010. The BBA believed the incentive for holding bank deposits has given way to paying down debt and using cash for household expenditure.

Statistics director at the British Banking Association, David Dooks says the gross lending statistics reported shows banks remain key to household finance provision. He added “But until there are clear signs of improvement in the economy and stability on the international front, households and businesses lack the confidence needed to seek credit for spending or investment. Stocks of bank lending therefore continue to be driven down, as repayments dominate over the absence of any material rise in borrowing demand.”

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