In contrast the number of loans for remortaging and other purposes both continued to decline in April at a seasonlly adjusted 44,827 against 47,536 last time and a six month average of 55,517.
The high street banks’ net mortgage lending of £2.7bn has not been as low for some eight years and consequently, the trend edged lower, according to figures relaesed today by the British Bankers Association (BBA).
Personal deposits rose for the third successive month but the savings trend in bank accounts remains subdued. Lending to financial companies decreased as recent short-term lending unwound and there was a net repayment from non-financial companies.
BBA statistics director, David Dooks, said of the latest data: "The house purchase part of the mortgage market appears to have stabilised, with slightly more approvals coming through, although April's weak net mortgage lending reflects the lower number of approvals in previous months. Households' uncertain financial circumstances not surprisingly continue to dictate consumer behaviour, both in the housing market and in generating only low demand for new personal loans. Company borrowing also reflects the economic backdrop, with most non-financial sectors seeing net repayments, although short-term finance for other financial companies unwound in the month, suggesting that their financing needs may be easing."
