Consequently, mortgage lending has grown by 4.6% over the last year and looking ahead, the number of loans approved for house purchase remained stable. Consumer credit continued to contract while personal deposits strengthened in August. Remortgages were down 47% on last August's figures.
BBA statistics director, David Dooks, said of the latest data: "The main high street banks' mortgage lending has stabilised in a market where other lenders are largely inactive. Loans approved for house purchase have recovered to early-2008 levels, but low levels of customer demand and a limited number of properties coming onto the market will continue to moderate lending. In reaction to the economic conditions, consumers appear to be building up their savings and controlling their appetite for unsecured borrowing.
“Lending to a range of company sectors expanded in August, with the manufacturing and construction sectors the only areas showing net repayments. In the latter case, this continues the sector's steady contraction in borrowing seen throughout this year."
