July's gross mortgage lending reached a record £14.5 billion, following the lower Jubilee and World Cup-affected total in June. However, repayments were also at a record level, so that net lending was below May's record increase.
237,500 mortgage loans were approved in July for a total of £15.4 billion, 16% and 14% more respectively, than in June. Within the total, the value of loans approved for remortgaging and equity withdrawal both reached new record levels. The average loan value of £88,800 was 2% lower than in June, but 14% higher than a year ago.
Commenting on the figures BBA chief executive, Ian Mullen, said: "At first glance July's figures appear very strong, but allowing for the effect of the Jubilee holiday in June and assessing the two months together, it suggests that demand, though buoyant, is not continuing to escalate from the peak seen in May. Strong levels of new personal borrowing on cards and loans were matched by repayments and the signs are that people are still borrowing within their means."
