May shows strong levels of mortgage lending

Figures released today by the British Banking Association (BBA) have revealed that strong levels of mortgage lending were recorded by Britain’s major banks in May.

A net underlying increase in total sterling lending to the UK private sector of £12.4 billion took place, with a total lending level of £1,212 billion recorded.

Net mortgage lending increased by an underlying £5.7 billion – a rate higher than the average of £5.1 billion measured across the last six months.

Unsecured personal lending also rose in comparison to the previous months’ typical amount, from £0.3 billion to £0.4 billion.

David Dooks, director of statistics at the BBA, said: “May’s rise in net mortgage lending, the largest monthly increase since the rise of £6 billion in April two years ago, shows the mortgage market to be very much alive at a time when annual house price growth is strengthening.”

One area to see a fall in the measurement made by the BBA was the number of deposits from the private sector, which fell 0.1 per cent to hit a level of £869 billion.