View more on these topics

Remortgage lending up 28% year-on-year in October

Remortgage lending increased by 27.6 per cent year-on-year in October, according to data from the Bank of England.

Remortgage lending by the major UK lenders totalled £3.7bn in October, up from £2.9bn in October 2010, but down marginally on the £3.8bn lent in September.

Total gross mortgage lending was £10bn in October, down slightly on the £10.1bn lent in September but up 8.7 per cent on the £9.2bn lent in October 2010.

Lending for house purchase was little changed on either a monthly or annual basis. It totalled £5.5bn in October, down slightly on the £5.6bn lent in September but up marginally from the £5.4bn lent in October 2010.

Furthermore, the Bank’s lending to individuals report shows that total lending secured on dwellings rose by £1.3bn in October, greater than the previous six-month average increase of £0.6bn.

Gross lending secured on dwellings totalled £12bn in October, down slightly on September’s £12.2bn. Repayments were £11bn, 4 per cent lower than September’s figure of £11.5bn.

The number of loan approvals for house purchase increased by 3 per cent from 51,193 in September to 52,743 in October. This represents a 7.4 per cent increase on the previous six-month average of 49,097.

The number of approvals for remortgaging was broadly in line with August and September at 34,666 but was higher than the previous six-month average of 31,764, by 9.1 per cent.

Capital Economics UK economist Samuel Tombs says while the statistics show a reasonable rise in mortgage approvals, this is unlikely to mark the start of a sustained pick-up in activity.

He says: “The number of mortgage approvals for new house purchase rose from approximately 51,200 in September to 52,700, but this just reversed September’s drop.

“Rapid falls in employment and real earnings, as well as deteriorating conditions in wholesale funding markets, suggest that approvals are unlikely to keep rising.”

Recommended

Commercial breaks

The proposed changes on tax for non-domiciles offer a range of opportunity to invest in businesses

1

Reports suggest Govt to delay auto-enrolment for small firms

The Government is set to delay the introduction of auto-enrolment for small firms by one year, according to the Daily Mail. The paper reports the Government will announce in its autumn statement on Tuesday that firms with less than 40 employees will be given an extra year to comply with the new rules. Under the […]

2

FSA set to ban death bond marketing

The FSA plans to ban all marketing of traded life policy investments to UK retail investors and says firms that have recommended these products should consider whether redress is due to investors. It published a guidance consultation on TLPIs this week, which are also known as traded life settlements or death bonds. The products operate […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com