The British Bankers' Association (BBA) thinks mortgage demand, although strong, may be peaking ...
The British Bankers' Association (BBA) thinks mortgage demand, although strong, may be peaking according to its latest figures.
Ian Mullen, chief executive of the BBA explained: "Customer appetite for new mortgage products was strong in July and consequently, the major banks' higher lending reflected an increase in their share of the mortgage market. However, looking ahead, demand may be peaking. Though approvals numbers for re-mortgaging continued to strengthen, those for house purchase or equity withdrawal were slightly lower than in June, and the seasonal pattern in previous years would suggest that overall mortgage demand will moderate towards the end of the year."
Gross mortgage lending by the Major British Banking Groups (MBBG) totalled £10,979m in July, compared with £10,350m in June. After repayments and redemptions totalling a strong £6,792m, net lending rose by £4,187m to £365,923m. In seasonally adjusted terms, and allowing for a securitisation, July's underlying rise of £3,501m was greater than the rises of around £3,150m in the previous two months.
In addition to loans drawn down, around 209,166 further loans were approved, with a total value of £12,581m. However, partly reflecting the seasonal pattern, these figures were around 1.5% lower than the previous month's totals, both by number and by value.
Net consumer credit rose by £992m, compared with £923m in June and £1,182m in May, the peak month of this year.
Mullen commented: "Consumer credit figures present a mixed picture; credit card borrowing and personal lending, both seeing strong levels of repayment, were very subdued, whilst overdraft levels rose. Overall, July's rise was marginally higher than in June."
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