Growth in mortgage lending at two-year high, says BBA |
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Tue, 25 Apr 2006 08:30
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LONDON: Mortgage lending in Britain rose by 5.4 billion pounds in March, its highest level in 21 months, according to the British Bankers Association. This compares with a rise of 4.7 billion pounds in February and the six-month average rise of 4.9 billion pounds.
Analysts had forecast a slowing down in mortgage lending for the month to 3.8 billion pounds.
The BBA said unsecured lending fell by 0.4 billion pounds during the month, which is well below the six-month average of a 0.5-billion-pound rise.
The BBA's director David Rooks said the contrast between stronger mortgage lending and net repayments of unsecured borrowing is an indication that individuals are optimistic about the housing market, though they are careful about card borrowing, overdrafts or taking on personal loans.
Meanwhile, the Building Societies Association said the value of mortgage approvals -- loans agreed but not yet advanced -- had gone up 29 per cent from a year ago to 4.672 billion pounds.
The Council of Mortgage Lenders too had last week said gross mortgage lending totalled 28.310 billion pounds in March, the highest figure for this month since records began in 1974.
The BBA said borrowing on personal loans and overdrafts had fallen by 100 million pounds in March, while credit card borrowing, which had risen by an average of 200 million pounds over the previous six months, was down by the same amount.
Deposits from the private sector had gone up 16 billion pounds or 1.9 per cent to 856 billion pounds.
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