Gross mortgage lending was £11.9bn in February representing a 3% increase in mortgage lending for the previous month, according to the latest figures from the British Banker's Association (BBA).
But this was still 12% lower than in February 2004 says the BBA while the number of approvals for house purchase was also down 35% and the amount approved was down 26%.
Seasonally adjusted net mortgage lending rose by £4.8bn compared with £4.2bn in January and £5.3bn in February 2004. This compares to an average of £4.4bn for the last six months.
There were 159,391 mortgage approvals in February with a total value of £13.1bn up 22% on January but still 25% lower than February 2004. Loans approved for house purchase were 42% higher than January’s figure but again still 33% lower than February the previous year. The average approval for house purchase was £119,000.
As reported on IFAonline10 days ago, the Council of Mortgage Lenders produced gross mortgage lending figures suggesting lending had remained flat during February at £17.2bn, slightly down on January’s lending figures of £17.3bn and 18% lower than lending figures for February 2004 at £21.1bn.
David Dooks, director of statistics at the BBA, says February’s figures show that while mortgage lending is clearly running at levels well below those of last year they also indicate the trend of decline may be bottoming out. “We have seen the start of the seasonal upturn in loan approvals, albeit from a very low point in the case of house purchase loans, so it will be important to see how strong the usual spring impetus will be in the coming monhs,” he adds.IFAonline
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