Following last week’s release of the Major British Banking Groups' (MBBG) net lending figures for June, further information now available on lending to individuals shows:
- June’s gross mortgage lending of £20.5bn was the highest on record, 12 per cent above the outturn for May and 24 per cent higher than June last year.
- Seasonally adjusted underlying net mortgage lending (gross lending minus repayments and redemptions) rose by £5.6bn, compared with £5.8bn in May, £4.7bn in June 2005 and an average of £5.3bn over recent months.
- There were 212,768 mortgage approvals (for all purposes) in June, with a total value of £22.1bn. Overall approvals were 9 per cent higher than in June 2005 but 9 per cent lower than in June 2004. The average approval for house purchase fell in June to £137,700, only some 5 per cent higher than a year earlier.
David Dooks, BBA director of statistics, said:
“Although gross mortgage lending reached record levels in June, numbers of approvals though stronger than in mid-2005 were weaker than at the equivalent time in either 2003 or 2004.”
Compared to the same month a year earlier, June’s loan approvals for house purchase were 22 per cent higher by number and 27 per cent higher by value. Remortgaging approvals were 11 per cent higher by number and 23 per cent higher by value; however approvals for equity withdrawal were 8 per cent lower by number and unchanged by value.
