Mortgage News
Mortgage lending holds steady in August
The housing market continues to show a drop in demand as mortgage lending by mutuals stayed below £2bn for August, unchanged from the month before.
Mortgage approvals made in August were around £1.8bn, slightly lower than the £1.9bn in July.
Paul Broadhead, head of mortgage policy at the BSA, said: “The market is showing falling levels of demand and a flattening out of house price growth.”
He added: “With continued economic uncertainty, lending activity could fall back if buyer interest continues to show signs of weakness.”
Savings balances held at mutuals also decreased by £699m in August, following a decrease of £1bn in July.
Almost £1bn was withdrawn from savings accounts by consumers in August, compared to £1.3bn in July.
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Brian Morris, head of savings policy at the BSA, said: “Households are facing a difficult environment which helps explain the withdrawal from savings accounts seen in August.
“Consumer prices are outpacing growth in average earnings and unemployment remains elevated.
“Also, the low Bank Rate is making it difficult to attract people who can afford to save when potentially higher, if more risky, returns are possible in the equity markets,” he continued.