You are here: Home - News -

Modest upturn in lending levels reflects changes in sales market

by:
  • 01/02/2001
  • 0
The level of mortgage lending rose in November with gross lending rising to £10.4 billion compared w...

The level of mortgage lending rose in November with gross lending rising to £10.4 billion compared with £9.9 billion in October, according to the latest figures from the CML/DETR.

Lending for house purchase climbed slightly from £6.1 billion in October to around £6.5 billion in November and the level of remortgaging remained constant at £3.2 billion. Peter Williams, deputy director general of the CML, said: “November’s figures bears out the CML’s view that the housing market has entered a steady period. Modest increases in lending are forecast to be accompanied by house price rises of around 6% in 2001.

The average new fixed rates fell from 6.41% to 6.25%, while the average new variable rates dropped from 6.14% to 6.07%. Fixed rate loans accounted for 31% of new loans taken out compared with 33% in October, and consequently there was a slight increase in the popularity of variable rate loans in November, rising to 69% of new lending.

The latest figures from the British Banker’s Association (BBA) show that mortgage lending rose by just over £2 billion, which was the largest monthly rise since August. Tim Sweeney, director general of the BBA, said: “Following two months of relatively lower growth in the major banks’ mortgage lending, November saw a return to the higher trend of the summer months.”

The Building Society Association (BSA) also reported growth as gross advances amounted to £2.3 billion in November, up from £2.2 billion in October. Adrian Coles, director general of the BSA, said: “The steady rise in building societies’ gross advances for the third month in a row reflects recent industry reports of an underlying upward trend in house prices. After a period of slight uncertainty earlier in the year, it seems confidence has returned to a higher level in recent months.”

Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
HSHL launches in Northern Ireland

High Street Home Loans has announced that its full range of mortgage products is to be made availabl...

Close