Figures show year on year increase in mortgage lending

According to recent figures released by High Street banks in the UK the mortgage market has seen net annual growth year and year, with an increase of 4.1 percent. The figures, which were compiled from banks’ data, have been put together by the British Bankers’ Association, and have indicated that annual growth when it comes to mortgage lending is on the up.

The figures also showed that High Street banks were seeing strong repayments from customers, and this is because borrowers are continuing to take advantage of the ongoing low interest rate, which stands at just 0.5 percent and is the lowest in the history of the Bank of England, which spans over three centuries. The base rate has been at this rock bottom level for eighteen months, although there is currently much speculation over when it may have to be increased in order to keep a lid on inflation.

The BBA report also indicated that there has been an influx of homes for sale coming onto the market, and put this down partly to the abolition of the controversial Home Information Packs, which were brought in by the former Labour government but were scrapped very shortly after the new coalition government came into power earlier this year.

David Dooks from the British Bankers’ Association said: “Gross mortgage lending remains stable, although demand for mortgages continues to be subdued. The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals. Consumer credit outstanding continues to reflect high repayments together with pressure on household finances and job uncertainty while companies are tending to retrench and reduce their bank borrowing.”