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BBA: Gross lending falls 7.6% year-on-year

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  • 23/09/2010
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BBA: Gross lending falls 7.6% year-on-year
The British Bankers’ Association (BBA) has revealed high street lenders’ gross mortgage lending in August was £8.1bn, 7.6% less than the same period last year.

This was slightly down on July’s gross lending of £8.4bn.

BBA figures also showed that the annual growth in net mortgage lending was 4.1%, substantially ahead of the 1.0% for the whole mortgage market in July this year.

Mortgage repayments continue to be relatively strong, with net mortgage lending increasing by £2.5bn in August compared with £3.3bn for the same month in 2009.

House purchase approvals in August were weaker than in recent months, reflecting the low demand. For the month, there were 73,983 mortgage approvals compared to 75,795 in July.

While house purchase and equity withdrawal approvals both fell, remortgage approvals showed a slight lift between July and August, from 23,022 to 23,906.

The BBA said that remortgage approvals have been slightly stronger in the last two months while those for equity withdrawal have remained at similar levels to July and the previous six months average.

The average value of house purchase approvals was down £5000 to £143,500, but remained 3.8% higher than a year ago.

David Dooks, statistics director at the BBA, said: “Demand for mortgages continues to be weak despite more properties reportedly coming on to the market. Even with stable or falling house prices the current economic climate makes it unlikely that demand will pick up in the near future.”

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