Mortgage approvals rise in May
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The latest statistics from the BBA show that high street banks approved 36,709 mortgages for house purchase in May, compared to 35,964 in April.
But the remortgage market remained sluggish, with 21,229 mortgage approvals from high street banks in May, slightly down from 21,551 in April.
Gross mortgage lending rose from £8.3bn in April to £9bn in May, while net lending grew by £2.6bn in May compared to growth of £1.9bn the previous month.
The BBA calculates that high street banks are currently provide over 70 per cent of total house purchase approvals, compared with around 55 per cent three years ago.
BBA statistics director David Dooks says: “High street banks are the main providers in the mortgage market, supplying 75 per cent of all new lending and approving more than 35,000 loans for house purchase each month.
“The low interest rate environment is resulting in customers choosing to reduce or pay off borrowing, particularly personal loans, rather than saving.”
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