Bank mortgage lending subdued last month
Tuesday 23 August 2011
Mortgage lending by Britain's biggest banks was flat last month, figures showed today, as demand for borrowing remained subdued amid a sluggish economy.
Gross mortgage lending remained at £7.6 billion last month, equal to the previous month's lending, according to the British Bankers' Association (BBA), after an 11% plunge between May and June.
Elsewhere, the number of mortgage approvals was up 4% month on month at 74,950, while remortgages increased 7% to 26,043.
David Dooks, BBA statistics director, said: "Demand for borrowing from both households and companies continues to be weak, reflecting slow growth in the economy."
Net mortgage lending - gross lending minus repayments - was up in the period by 1.7% at £900 million, while unsecured credit, such as loans and credit cards, contracted by 1.1% to £100 million.
Retail sales continue to grow slowly - edging ahead 0.2% in July - so consequent demand from consumers for unsecured borrowing remains weak, the BBA said.
Companies repaid loans more than they borrowed in July, leaving net lending of minus £8.6 billion. This compares to a surplus of £6.8 billion in June.
The biggest decline in net lending came from financial companies, possibly due to half-year accounting reasons, while non-financial net lending was flat.
Brian Murphy, head of lending at independent mortgage broker Mortgage Advice Bureau, said the July figures reflect mortgage applications made before the summer holiday period when, historically, mortgage lending drops off.
He said: "A stronger indicator as to the health of the mortgage market will be mortgage applications made in September and October.
"In a healthy market we would expect to see an uplift in numbers post-summer vacations, but whether this will happen is anybody's guess.
"The problem doesn't lie with the lending environment, which is highly attractive at the moment. The problem lies with consumers feeling the financial pinch."
Independent Partners: Get fee-free expert mortgage advice and find the right mortgage deal for you.
Authorities failing in hunt for 'most wanted' tax dodgers who owe HMRC £844m
How to protect your assets if the stock markets begin to head south again
A student's guide to financial survival: You don't have to drown in debt at university
You'll need £220,000 for a minimum wage in your retirement
10 tips for taking out a personal loan
- 1 Rice Bucket Challenge: India's take on the Ice Bucket Challenge 'for Indian needs'
- 2 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
- 5 Teenager dies after suspected ice bucket challenge goes horribly wrong
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...
£45000 - £75000 per annum + benefits+bonus+package: Harrington Starr: Senior C...
Negotiable: Harrington Starr: GUI Developer (GUI,C#,.NET,VB6)SurreyCompetitive...
£30000 per annum + benefits+bonus+package: Harrington Starr: Junior Database A...
Day In a Page
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony