Mortgage lending in the UK grew stronger in July following a modest rise in June, with net lending g...
Mortgage lending in the UK grew stronger in July following a modest rise in June, with net lending going above the six-month average,the BBA says.
Gross and net mortgage lending both gained more than 10% in July compared to the previous month.
Gross mortgage lending totalled £16.9bn - a 16% rise compared to July last year, and 13% higher than in June this year.
July's seasonally adjusted rise in net lending of £5.5bn was also 11% higher than in June. This is well above the six-month average of £4.9bn, the BBA adds.
In total, 281,500 mortgage loans were approved in July, 10% more than in June. Still pacing the upward trend are loans approved for remortgaging and for equity withdrawal, with a 23% increase and a 35% increase respectively compared to July 2002.
However, new buyers are still shunning the market, as the number of house purchase loan approvals only increased 5% compared to July last year.
Meanwhile, the average house purchase loan value rose to £105,900, a 19% increase compared to the same time last year.
The average value of loans approved for house purchases have gained 25% over the past 12 months. The value of remortgaging loans is 43% higher, and the value of approved equity withdrawal is 40% higher.
BBA executive director Roger Brown says that the most noticeable figure is the increase in the demand for loans for equity withdrawal.
The association's latest figures also show that new borrowing on credit cards rose 12% compared to July last year, while total consumer credit increased by a net £0.7bn in July.
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