The information shows that:
- July saw gross mortgage lending total £16.9bn, some 16% higher than July last year. With redemptions and repayments stripped out, the resulting rise in net lending, seasonally adjusted, was £5.5bn.
- In total, there were 281,500 mortgage loans approved in July, 10% more than in June and 19% more than in July last year. Compared to the same time a year ago, the number of house purchase loan approvals was 5% higher, the number of loans approved for remortgaging was 23% higher and the number approved for equity withdrawal 35% higher. The average house purchase loan value rose to £105,900 some 19% higher than a year earlier.
-Total consumer credit rose by £0.7bn net in July, close to the recent monthly average.
Roger Brown, BBA executive director, said: “Both gross and net mortgage lending were stronger in July and the approvals data for the month were robust. A notable feature of the approvals figures was the scale of the demand for loans for equity withdrawal. Credit card lending recovered in July following the modest rise in June, though this was offset by weaker growth in other unsecured lending.”
Mortgage Lending
- Gross lending totalled £16,903mn in July, some 13% more than in June.
-July’s seasonally adjusted rise in net lending of £5,509mn was 11% higher than in June and above the average of +£4,900mn over the previous six months.
- Compared to July 2002, the value of loan approvals for house purchase was 25% higher, the value of approvals for remortgaging 43% higher and the value of approvals for equity withdrawal 40% higher.
Consumer Credit
- New borrowing on credit cards totalled £7,415mn in July, 12% more than in July 2002. Following June’s relatively modest seasonally adjusted increase in net lending of £199mn, lending rose by £396mn in July.
- New lending on personal loans and overdrafts totalled £3,489mn, 10% less than in July last year. After seasonal adjustment, net lending rose by £335mn in July compared with an above average increase of £630mn in June.
