Mortgage lending slows down in February, says BBA |
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Published
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Mon, 20 Mar 2006 14:20
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LONDON: There has been a slowing down in mortgage lending in February, according to the British Bankers' Association. It said underlying mortgage lending rose by 4.4 billion pounds during the month, down from a rise 4.6 billion pounds recorded in January and lower than the average 4.8 billion pounds over the previous six months.
The BBA hastened to add that this slow down does not suggest any downturn in the housing industry. Its director of statistics David Dooks said just as it did not regard the above-trend rises in major banks' net mortgage lending towards 2005-end as leading to a sustained upturn in mortgage market, "we do not now see the moderately weaker figures since as signalling a downturn".
The Building Societies Association came out with a set of figures indicating a fall in the value of mortgage approvals -- loans approved but not yet disbursed -- in February to 3.872 billion pounds from 4.254 billion in January.
The Council of Mortgage Lenders announced that gross mortgage lending reached a record total for February -- 21.8 billion pounds, though down from 23 billion pounds in January. It marked a 22 per cent increase compared to February 2005. Usually, February is considered the weakest month in the year.
The council's director general Michael Coogan said demand in the housing market has returned to the levels witnessed two years ago. Areas which had sluggish activity in past are now seeing strengthening of the house prices, he added.
BBA said personal lending grew 0.7 billion pounds over the month, borrowing on loans and overdrafts rose by 0.5 billion pounds and on credit cards by 0.2 billion pounds. It also said deposits from private sector increased by 3.6 billion pounds, compared with an average growth of 2.4 billion pounds in the past six months.
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Mortgage lending numbers falls in December, says BBA 