BoE: Mortgage lending growth rate slows

Date:Tuesday 5th May 2009
Author: Susanna Kavka

The growth rate of mortgage lending in the UK slowed in March, new figures reveal.

Produced by the Bank of England, the statistics show that the increase in net lending secured on dwellings was £0.8 billion over the month.

This was lower than the rise recorded the previous month and was below the six-month average.

Meanwhile, the 12-month growth rate in mortgage lending provided by UK lenders declined by 0.4 percentage points to two per cent.

In addition, the number of home loans approved during March was 39,230, while there were 31,746 approvals for remortgaging.

According to the Council of Mortgage Lenders (CML), all UK lenders are still facing funding constraints, while consumer demand is "far from certain".

Commenting on the issue, Bob Pannell, head of research at the CML, said: "Prospects remain subdued.

"Realistically, the most reasonable expectation is for a period of lending that stabilises but 'bumps along the bottom' at relatively low levels for some considerable time."