BBA highlights mortgage lending trend

Date:Wednesday 25th August 2010
Author: Max Freedman

The British Banking Association (BBA) has indicated that gross mortgage lending figures for July show a fairly stable level of borrowing.

Statistics director at the industry body David Dooks made his comments after it was found that net mortgage lending by banks has grown 4.1 per cent compared to the same period last year.

Mr Dooks noted that demand for mortgages remains "subdued" and cited the impact of job uncertainty and the pressure on household finances as factors that have negatively impacted the figures.

"The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals," he remarked.

It was pointed out by the BBA that the 4.1 per cent figure for July is particularly encouraging when compared to the 0.9 per cent mortgage market growth in June.

This month, the organisation highlighted the responsibilities banks have to support the economy and stressed that there are funds available for businesses and individuals to borrow.