Latest statistics revealed by the British Bankers' Association show a rising trend in mortgage lending which reflects climbing house prices.
According to the British Bankers’ Association (BBA), gross mortgage lending for August 2006 reached a record GBP20.9 billion, some 9% higher than July, and 24% higher than the GBP16.8 billion for August 2005.
The BBA also revealed that there were 184,557 mortgage approvals (for all purposes) in August, with an aggregate value of GBP19.1 billion. This number of approvals was 5% lower than in August 2005, although their value was 4% higher. The average loan approved for house purchase was GBP141,500, some 8% higher than a year earlier.
Record gross and net mortgage lending is a reflection of house prices and mix of loans, rather than increased volumes. Compared to the numbers of secured loans approved at the same time in previous years, August shows robust and stable demand orientated towards house purchase rather than for other purposes, though below the volumes seen in 2003, said David Dooks, BBA director of statistics.