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BBA: Gross mortgage borrowing unchanged at £7.8bn in April

Gross mortgage borrowing figures remained static in April, unchanged from March’s £7.8bn figure and 1 per cent below the £7.9bn six month average, according to figures from the British Bankers’ Association.

The value of mortgage approvals stood at £8bn in April, up 3.3 per cent on the £7.7bn figure recorded for March. House purchasing accounted for the majority of this, at £5bn, while remortgaging accounted for £2.7bn. The remaining £0.3bn is attributed to other secured borrowing.

The number of mortgage approvals rose slightly, from 58,994 to 59,813 over the same period. House purchase approvals accounted for 86 per cent of this monthly total, or 32,153 individual applications, while the number of remortgage applications stood at 19,060.

The average approval for house purchase value rose 2.2 per cent, from £152,500 to £155,900. For remortgages, it was 7 per cent higher in April, up from £133,900 to £142,800.

West One Loans director Duncan Kreeger says: “Some members of the BBA are trying to lend more. But sadly the results speak for themselves – particularly in mortgage lending. This month in 2007 saw the very same banks lending more than twice what they’ve managed in April 2013. Mortgage lending has suffered a 60 per cent drop since this pre-crisis peak and even the most optimistic predictions don’t expect mainstream banks to take up that slack for perhaps a decade, if ever.”

Anderson Harris director Adrian Anderson says: “Mortgage approvals for purchases and remortgaging continued to edge upwards slightly in April as Funding for Lending continued to support the market. Mortgage rates continue to fall, offering cheaper options for borrowers. The BBA expects this to continue, with first-time buyers in particular benefiting under the scheme in coming months.”

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