New statistics from the British Bankers’ Association has found that July’s gross mortgage lending of £21.3bn was 12 per cent higher than the same time last year.
With annual house price inflation below this rate, the stronger figure reflects higher levels of re?mortgaging activity in the month.
Underlying net mortgage lending rose by £5.7bn. Although this was higher than June’s increase and the recent average (both £5.4bn), annual growth remained at around 14 per cent.
There were 182,950 mortgages approved (for all purposes) in July with an aggregate value of £21.5bn. The average loan approved for house purchase was £156,900, some 13 per cent higher than a year earlier.
BBA director of statistics David Dooks says: “With customers seeking to replace deals or fix their mortgage costs, increased remortgaging activity boosted the banks’ lending in July. Lower approvals volumes simply reflected the seasonal pattern, so we expect the stable trend in the banks’ lending to continue over the next couple of months.
When compared to July 2006, house purchase approvals were down 1 per cent by number but up 12 per cent by value; remortgaging approvals were up 12 per cent by number and up 26 per cent by value; while approvals for equity withdrawal were down 2 per cent by number and up 10 per cent by value.