27 Mar 2013

Mortgage lending stalls

Insights, Property, Publications

‘The British Bankers’ Association (BBA) has reported that the total number of mortgages granted in February was 6% lower than at the same time last year.

The number of home loans approved was 30,506, the lowest figure since last July. The BBA said £7.8bn of home loans were granted during the month, but low interest rates have allowed borrowers to make high capital repayments, and net lending for the month fell by £982m.

Ian Gordon, banks analyst at Investec, said: “Negative net lending in February of £982m is the worst on record, ever, since BBA records began in 1997, and it is also the first time that net mortgage lending has remained negative for three consecutive months.”‘

Source: BBC