Gross mortgage lending reached £17.8bn in April, an increase of £1.2bn since March, according to the British Bankers' Association (BBA).
Despite the monthly increase, April’s figure marks a year-on-year decrease of 6.3%. Annual declines were also recorded in the number of mortgages approved for house purchase and equity release.
Although mortgage approvals for house purchase increased by more than 3,000 between March and April, April’s figure of 38,704 remains nearly 40% lower than the same time last year. Equity release approvals also increased slightly in April but were 26.3% lower than last year.
Approvals for remortgaging, however, remained exceptionally strong in April, having increased by 20.3% since last year.
David Dooks, statistics director at the BBA, says: “Pressures on household finances, stalling house prices and tighter lending criteria in response to lower liquidity are all constraining demand for house purchase and equity withdrawal loans, which are both well down on levels last year.
“In contrast, there is an active remortgaging market as people switch lenders to obtain better deals. With some £18bn of new lending and nearly 150,000 loans approved in April, it is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt.”IFAonline
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