Net mortgage lending rose by £3.6 billion in December, which was seven per cent below November’s figure. And, although there were 146,335 loans approved in December, with a total value of £9.2 billion, they were 21 per cent fewer by number and 18 per cent lower by value than in November.
There were 43,131 approvals for re-mortgages with a total value of £3.3 billion, which were 11 per cent lower by number and 14 per cent by value than in November. And, the number of loans approved for either home improvements or equity withdrawal dropped 29 per cent from November.
However, the average loan value rose, by £1,500 to £80,700, which was 10 per cent higher than in December 2000, suggesting that the outlook for the market is still positive.
Ian Mullen, chief executive at the BBA, said: "Gross mortgage lending and approvals data exhibited the usual seasonal weakness in December, rather than any inherent sign of the market weakening. The full year 2001 saw gross lending 48 per cent higher than in 2000, as the fundamental strength of the market was underpinned by rising property prices, equity withdrawal and lower interest rates. Consumer credit also saw a seasonal pattern, but stronger than expected spending, particularly on credit cards, bolstered December’s increase."
