Gross new mortgage lending increased again during September according to the British Bankers’ Association (BBA) although the rate of increase is slowing on last year.
Net mortgage lending totalled £5.5bn, up from £5.3bn in August, and net consumer credit rose by £0.9bn to £7bn for the first nine months of the year. This compares to the rise of £8.7bn for the same nine months last year. 292,800 mortgage loans worth £23.3bn were approved in September, the highest monthly figures yet, 39% higher by number and 79% higher by value than September last year.
Remortgaging loans were 32% higher by number and 62% by value, and equity withdrawal loans were 41% higher by volume and 41% higher by value. While credit card borrowing was 7% higher than the recent monthly average, the rise in net lending on personal loans and overdrafts of £399m was well below the average monthly increase of £525m over the first half of the year.
David Dooks, director of statistics at the BBA, said: “The continued buoyancy of the mortgage market is clear to see in September’s lending figures and the strength of approvals means that this is expected to continue in the near term. Consumer credit, in total, is not growing as strongly as it did last year. Most months of this year have seen net lending increases below those of the corresponding month of 2002, with personal loan demand noticeably lowering.”