Gross mortgage lending by the MBBG totalled £10,637 million in October, some 8 per cent more than September’s £9,838 million. After repayments and redemptions totalling £6,768 million, net lending rose by £3,869 million (plus 1 per cent) to £377,045 million. In seasonally adjusted terms, October’s rise of £3,993 million was 7 per cent higher than September’s underlying rise of £3,724 million.
There were increased numbers of new loans approved in October, with 187,205 loans approved for a total value of £10,805 million. These figures were 12 per cent by number and 11 per cent by value higher than in September. These increases showed some recovery in demand, but not to the levels seen in the summer months.
Consumer credit rose by £708 million net, compared with £676 million in September. After allowing for seasonal factors, it was slightly above the recent trend.
Commenting on the figures, BBA chief executive, Ian Mullen, said: "October’s stronger lending figures may, in part, be a reaction to September’s dip in demand. However, there is no doubting the underlying buoyancy in the mortgage market, where lower interest rates should continue to underpin confidence. Growth in consumer credit shows little sign of slowing, though we continue to see a reduced use of credit card borrowing in favour of structured personal loans."
