BBA Figures Show Increase In Number Of Homeowner Loans
Last week we reported on how the latest figures from the Council of Mortgage Lenders (CML) have shown an increase in the number of homeowner loans and mortgages being approved.
These figures have now been backed up by the British Banking Association (BBA) who have revealed their latest statistics to show that net new lending on homeowner loans increased by £2.6 billion throughout the month of June, which equates to an annual growth rate of 5.1 per cent, which includes the figures for loans for both house purchase and remortgages.
There was an increase in the number of loans for both house purchase and remortgage during June, above the figures for May, with 35,235 new purchase loans and 28,133 loans for remortgage and both these figures a well above the six month average. However, on the yearly figures there is still a large difference between loans for purchase and those for remortgage, with purchase loans showing an increase of 64.7 per cent, compared with a drop in remortgage loans of 51.8 per cent, as many borrowers are still finding it cheaper to remain on their existing lenders standard variable rate, rather than switch loans.
David Dooks, director of statistics at the BBA, commented on the figures, he said “Number of new home loans approved by the high street banks are recovering from the very low level last November and so far this year, gross mortgage lending has topped £50 billion. After repayments and redemptions, the banks’ net rise in mortgage lending of £18 billion in the first six months is in sharp contrast to lending by the rest of the market, which is still contracting. People are showing little appetite for unsecured borrowing and are generally keeping their money in their accounts.”
