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Banks’ gross mortgage lending up 7% year-on-year

The banks’ gross mortgage lending totalled £8.4bn in September 2011, up 7 per cent on September 2010.

Figures from the British Bankers’ Association show this is also up slightly on the £8.3bn advanced in August.

The number of house purchase approvals was down 6 per cent on August’s figure at 33,130 in September, but 8% higher than in September 2010.

The number of remortgage approvals in September was down 8 per cent on the previous month at 24,498, and much the same as in September 2010.

The total value of all mortgage approvals was £8.4bn in September, 7 per cent lower than August’s £9bn but marginally higher than the previous six month average of £8.2bn. 

The BBA says that a slight upturn in recent months in house purchase and remortgage approvals led to stronger gross mortgage lending in August and September.

It adds that reports suggest that mortgage activity may have been stimulated by growth in the buy-to-let market.

David Dooks, statistics director at the BBA, says: “Households are limiting their borrowing in the face of unemployment concerns and pressure on household finances amid general economic uncertainty.

“A modest stimulus to gross mortgage lending is coming from the buy-to-let sector as rental yields continue to improve.”

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