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23 July 2010

BBA reports slight fall in June mortgage lending

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by Kay Mitchell

BBA reports slight fall in June mortgage lending

The British Bankers’ Association (BBA) has today revealed a slight dip in the number of new mortgages approved by the major banks in June.

According to the BBA, mortgage approvals for the month stood at 34,813, down from May’s figure of 36,418 and the lowest level since February.

However, the BBA highlighted that the figure is still 4.1% higher than June 2009.

David Dooks, BBA’s statistics director, comments: “The banks’ mortgage lending position was little changed in June. The abolition of Hips and a reported increase in the number of house sellers is expected to encourage activity in the market, though this may be tempered by households’ uncertainty over job prospects and the impacts of fiscal tightening.”

In comparison, earlier this week, the Council of Mortgage Lenders (CML) revealed a rise in mortgage lending for the month of June – recovering to a six-month high.

According to the CML, gross mortgage lending rose by 15% during the month to £13.1 billion – the highest since December 2009.

The figure was also 7% higher than June 2009 but the CML cautioned that the increase was a seasonal pick-up and the outlook remains subdued.

In other housing market news this week, HM Revenue & Customs (HMRC) revealed a rise in the number of homes sold in June in the UK.

According to HMRC, 86,000 homes worth at least £40,000 or more were sold in the month, a rise of 21% on May’s figure.

HMRC said the sales for June were the highest this year and were also 15% higher than in June last year.

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