Money News
Latest data (April) from the British Bankers' Association shows mortgage demand moderating in the face of rising interest rates. Gross mortgage lending of £17.3 billion was 12% more than in April 2006 - this largely reflecting 10% annual growth in house prices and strong re-mortgaging activity. However, underlying net mortgage lending (gross lending minus repayments and redemptions) rose by £5.0 billion, slightly down on March's increase, and lower than the recent average of £5.4 billion. The annual growth in net mortgage lending continued to stay around 14%.
There were 170,000 mortgages approved (for all purposes) in April; just 1% more than in April 2006, with an aggregate value of £19.1 billion. Meanwhile, the average loan approved for house purchase was £152,800, some 9% higher than a year earlier.
Elsewhere, spending on credit cards totalled £6.8 billion; 2.5% higher than April 2006. After seasonal adjustment, underlying net lending decreased by £143 million, however.
New lending on personal loans in April was similar to that in April 2006 and after seasonal adjustment, loan and overdraft lending rose by £155 million net.
David Dooks, BBA director of statistics, said: "The latest three months have seen net mortgage lending stabilise, with rises (albeit still around £5 billion a month) below the average of the previous six months.
"The picture from approvals points to mortgage demand weakening further as the year progresses and the cumulative effect of higher interest rates bites harder."
29 May 2007 © Moneyextra.com
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