Menu
28/01/2005
Mortgage lending expected to remain 'subdued'
Mortgage approvals fell by over a third last month, new figures from the British Bankers' Association have shown.
The BBA reported that house purchase loans were 38% lower by number and 31% lower by value in December. Remortgaging loans were also reduced by 15% in number and 2% in value, while equity withdrawal loans fell by 34% in number and 28% in value.
The average approval for house purchase also fell back, to £118,100 last month.
The BBA report revealed that gross mortgage lending was £14.2 billion in December, which was 3% lower than November and 10% lower than December 2003. However, the report said that the underlying seasonally adjusted rise in net lending (gross lending minus repayments) was £5.2 billion in December, which brought the annual increase to £62.3 billion, which was virtually the same as 2003.
Net mortgage lending rose in reported terms by £5,741 million, but, the report said, this was inflated by around £0.5 billion of internal group transactions, which did not represent increased demand from customers. The underlying rise was stronger than November's £3,665 million, although the annual growth rate remained at 14%.
David Dooks, BBA director of statistics, said: "Despite an upturn in net mortgage lending in December, in part reflecting a processing catch-up, the general slowdown in demand over the last six months saw lending in 2004 matching 2003's increase of £62.3 billion. This time of year sees a seasonal weakness in loan demand, but with approval volumes running well below those in the same month a year earlier, mortgage lending is expected to remain relatively subdued in the near-term."
(KMcA/SP)
The BBA reported that house purchase loans were 38% lower by number and 31% lower by value in December. Remortgaging loans were also reduced by 15% in number and 2% in value, while equity withdrawal loans fell by 34% in number and 28% in value.
The average approval for house purchase also fell back, to £118,100 last month.
The BBA report revealed that gross mortgage lending was £14.2 billion in December, which was 3% lower than November and 10% lower than December 2003. However, the report said that the underlying seasonally adjusted rise in net lending (gross lending minus repayments) was £5.2 billion in December, which brought the annual increase to £62.3 billion, which was virtually the same as 2003.
Net mortgage lending rose in reported terms by £5,741 million, but, the report said, this was inflated by around £0.5 billion of internal group transactions, which did not represent increased demand from customers. The underlying rise was stronger than November's £3,665 million, although the annual growth rate remained at 14%.
David Dooks, BBA director of statistics, said: "Despite an upturn in net mortgage lending in December, in part reflecting a processing catch-up, the general slowdown in demand over the last six months saw lending in 2004 matching 2003's increase of £62.3 billion. This time of year sees a seasonal weakness in loan demand, but with approval volumes running well below those in the same month a year earlier, mortgage lending is expected to remain relatively subdued in the near-term."
(KMcA/SP)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
20 January 2006
Mortgage lending shows strong growth
Mortgage lending was strong at the end of 2005, according to the latest figures from the Council of Mortgage Lenders. The CML said that an estimated £26.3 billion was lent to borrowers in December, a 25% increase on figures from the same month in 2004.
Mortgage lending shows strong growth
Mortgage lending was strong at the end of 2005, according to the latest figures from the Council of Mortgage Lenders. The CML said that an estimated £26.3 billion was lent to borrowers in December, a 25% increase on figures from the same month in 2004.
18 October 2001
Mortgage lending drops following previous record month
Mortgage lenders have reported a fall in demand for home loans in September. The Council of Mortgage Lenders (CML) said mortgage lending by banks and building societies fell to £14.3bn last month, from a record £16.
Mortgage lending drops following previous record month
Mortgage lenders have reported a fall in demand for home loans in September. The Council of Mortgage Lenders (CML) said mortgage lending by banks and building societies fell to £14.3bn last month, from a record £16.
26 November 2004
Mortgage lending falls for fifth consecutive month
The latest figures from the British Banking Association (BBA) have revealed that mortgage lending has fallen for the fifth successive month and the market value for mortgages is down for the second year in a row. The BBA said that gross mortgage lending in October, which stood at £15.1 billion, was £1.2 billion lower than September, and 15.
Mortgage lending falls for fifth consecutive month
The latest figures from the British Banking Association (BBA) have revealed that mortgage lending has fallen for the fifth successive month and the market value for mortgages is down for the second year in a row. The BBA said that gross mortgage lending in October, which stood at £15.1 billion, was £1.2 billion lower than September, and 15.
20 May 2005
Fall in credit card debt reported
Credit card debt in the UK has dropped for the first time in over ten years, the British Bankers Association (BBA) has reported. The BBA reported a fall in net lending on credit cards of £40 million in April – the first fall in this category since May 1994.
Fall in credit card debt reported
Credit card debt in the UK has dropped for the first time in over ten years, the British Bankers Association (BBA) has reported. The BBA reported a fall in net lending on credit cards of £40 million in April – the first fall in this category since May 1994.
01 March 2002
Credit card spending slows as mortgage demand grows
Consumer borrowing slowed in January due to more moderate credit card spending after Christmas. Total lending to individuals, including mortgages, bank loans and credit card spending, grew by £6.9 billion in January, £200 million less than in December. Credit card spending and overdraft borrowing expanded by £1.6 billion, down from £2.
Credit card spending slows as mortgage demand grows
Consumer borrowing slowed in January due to more moderate credit card spending after Christmas. Total lending to individuals, including mortgages, bank loans and credit card spending, grew by £6.9 billion in January, £200 million less than in December. Credit card spending and overdraft borrowing expanded by £1.6 billion, down from £2.
-
Northern Ireland WeatherToday:There will be a mixture of bright intervals and a few showers. Best of the sunny spells will be near the North Coast. Feeling on the cool side. Maximum temperature 10 °C.Tonight:Showers will gradually die out during the evening. A cold night with long clear spells leading to a touch of frost in places. Minimum temperature 0 °C.
