The level of mortgage lending remained unchanged at £10.7 billion in August, according to the latest survey of mortgage lending by the Council of Mortgage Lenders (CML) and the Department of the Environment, Transport and the Regions.
Lending for house purchase rose slightly in August to £7.3 billion from £7.2 billion in July. However, the level of remortgage activity dropped to £2.8 billion from £3 billion in July, although it still accounted for 26% of the total value of lending.
Michael Coogan, director general of the CML, said: “While gross lending is at similar levels to last year, the levels of remortgaging are significantly higher, showing that competition in the market remains intense.”
This was confirmed by the British Banker’s Association (BBA) new lending figures. Gross advances totalled £6.79 billion in August, down from £6.82 billion in July. Overall, approvals for new mortgage loans in August totalled 130,517, with a value of £6.25 billion.
This was 5% fewer by number and 3% less by value than in July.
Tim Sweeney, director general of the BBA, said: “While approvals data have shown a distinct slackening in demand for house-purchase loans since May, remortgaging activity remains buoyant as customers are attracted to an expanding range of products.”