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October mortgage lending jumps a third – BBA

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  • 25/11/2013
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Mortgage lending in October was more than a third higher than the same month in 2012, the latest figures from the BBA have shown.

Gross lending hit £9.9bn in the month, up on September’s figures and a rise of 32% compared to October last year.

The trade body’s monthly report covers all high street banks and figures represent around two-thirds of the mortgage market.

Net lending continued to shrink as homeowners overpaid on their mortgages and switched between lenders to obtain a more favourable rate.

This was shown by an 18% leap in remortgages during the year while approvals for house purchase loans were up a third during the same period. Government schemes such as Help to Buy were thanked for these rises.

Adrian Anderson, director of mortgage broker Anderson Harris, said: “Consumer confidence continues to improve, with demand for housing strengthening. Some buyers are worried about being priced out of the market further, while others are finally convinced that they will be able to get hold of mortgage finance at excellent rates so it’s as good a time as any to take the plunge.

“Several lenders have recently reduced their mortgage pricing to attract business and meet year-end targets, a trend we expect to continue into the new year. This should mean some great deals available to buyers and those remortgaging over the next few months.”

BBA statistics director David Dooks said: “The housing market continues to pick up. October’s new mortgage borrowing was 32% higher than in October last year and approvals for house purchase were 33% higher.

“Improving consumer confidence is also leading to the banks seeing higher demand for personal loans.”

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