Mortgage lending in June 'relatively unchanged'

Date:Monday 26th July 2010
Author: Max Freedman

The level of mortgage lending being carried out by high street banks did not change much in June, according to a British Banking Association (BBA) representative.

Statistics director at the organisation David Dooks explained that the outlook for the future is uncertain, since the impact of fiscal tightening and the unstable job situation may prevent much growth.

However, he did suggest that the abolition of Home Information Packs could be a positive factor and there are reportedly an increased number of sellers poised to hit the market.

Among the banking institutions included in the BBA's report are the seven biggest retail lending groups, such as Santander, Barclays and HSBC.

Mr Dooks added: "Overall lending to business continued to reflect subdued demand and contraction in lending to most non-financial sectors slowed."

This month, the BBA applauded the European Council for the progress it had made on setting up new European Union organisations, which will be tasked with supervising banking in the continent.