Higher Demand On Mortgages

28/08/2007

July’s gross mortgage lending figures reached £21.3bn, a 12 per cent increase compared with 2006 figures. Due to house price inflation below this rate, the stronger outline reflects superior levels of re-mortgaging movement during this month.

BBA director of statistics, David Dooks commented: “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.

Spending on credit cards was 8% higher than in July last year, but because cardholders are at least matching their spending with repayments, card borrowing continued to reject.”

Inspecting July 2006 figures, house purchase approvals dropped 1% by number but increased 12% by value; remortgaging approvals resulted an increase of 12% by number and up 26% by value, however approvals for equity withdrawal were less by 2% via number and up 10% by value.

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