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BoE: September lending up by £0.1bn

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  • 29/10/2010
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BoE: September lending up by £0.1bn
Total net mortgage lending in September rose by just £0.1bn compared to August’s increase of £1.6bn, according to the Bank of England (BoE).

Figures from the BoE showed that September lending was also notably below the previous six-month average of £0.5bn. This meant the annual growth rate fell slightly to 0.8% from 0.9% in August.

The three-month annualised growth rate also fell, by 0.2% to 0.4%.

The total number of mortgage approvals made in September was 99,656, worth £11bn.

House purchase approvals were largely unchanged between August and September at 47,498, worth £6.7bn, and 47,474, worth £6.6bn, respectively. This was down on the previous six-month average of 48,764.

The BoE figures showed that remortgaging approvals modestly improved, rising from 28,390 worth £3.7bn in August to 28,903 worth £3.8bn in September, which was up on the six-month average of 27,067.

Approvals for other purposes in September numbered 23,279 down from 23,963 in August and below the six-month average of 24,754.

Richard Sexton, business development director at e.surv, highlighted that not only were mortgage approval numbers down, but LTV ratios as well: “This is down to credit market basics; lenders are toughening their criteria and buyers are cautious. As a result, we see fewer loans and those that are written are smaller.”

He added: “The housing market may stay quiet for a while, particularly in regions more exposed to public spending cuts. But housing is not a simple financial asset, it’s in very short supply and that will put a floor under any price weakness, as it did even in the teeth of the credit crunch.”

BoE figures also revealed that total net lending rose by £0.4bn, with the twelve- and three-month annualised rates remaining unchanged at 0.8% and 0.5% respectively.

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