The slowdown in the housing market continues with gross mortgage lending for July almost £500m lower than June, according to the latest figures from the British Banker's Association (BBA).
Gross mortgage lending stood at £16.04bn, slightly lower than June’s £16.47bn and 11% lower than during the same period last year.
Seasonally adjusted net lending rose by £3.7bn last month - its lowest level in nearly four years - compared with £4.7bn in June and £5bn in July 2004. This compares with the average increase of £4.4bn over the last six months, says the BBA. There were 181,933 mortgage approvals in July with a total value of £17.1bn representing a decline of 7% from June and a drop of 17% when compared to the same period last year. The average approval for house purchase was £132,700.
David Dooks, director of statistics at the BBA, blames July’s sluggish rise in net lending on the higher than usual number of customers redeeming fixed rate mortgage deals which came to an end last month. That and what Dooks calls the “relatively slow uptake of approvals” continue to underline the subdued mortgage environment of late, says the BBA.
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