Gross mortgage lending in the UK remained flat at £7.6 billion in July, as the economy remained weak, according to the British Bankers’ Association (BBA).
This was eight percent lower compared to the total mortgage lending a year ago and an 11 percent decline between May and June, said BBA.
“Demand for borrowing from both households and companies continue to be weak, reflecting slow growth in the economy,” said David Dooks, Statistics Director at BBA.
Meanwhile, home loan approvals rose slightly by four percent at 74,950 in July from June. Meanwhile, the average value (£151,500) was two percent higher compared to a year ago, while the total value of approvals climbed to £8.7 billion from £8.3 billion in June.
“Overall, companies’ appetite for finance remains low, reflecting business decisions in difficult trading conditions – new finance made available to one company is simply being offset by debt repayment from another,” quipped Dooks.
The number of mortgage approvals for those looking to remortgage was higher in July than in June, up seven percent to 26,043 approvals.
BBA said the reports “suggest that remortgaging may have been stimulated by some growth in the buy-to-let market.”
To contact the journalist, you may send your message to editor@propertyguru.com.sg