Annual mortgage lending increases

Mortgage lending increased in the year to March, new figures have revealed to those seeking cheap mortgages.

The British Banking Association BBA announced today April 27th that the annual growth of the banks' net mortgage lending was 2.3 per cent in March.

This is a substantial improvement on the monthly figures of 0.7 per cent for the whole of the mortgage market in February, people looking for cheap mortgages may note.

"Uncertainty about future prospects for the economy is a significant factor behind these statistics," explained BBA statistics director, David Dooks.

He added that a focus of paying down debt from homeowners has contributed to a contraction of net unsecured borrowing and low net mortgage lending.

However, he conceded that "new mortgage lending is holding up fairly well".

Preliminary figures from the Office for National Statistics revealed that Gross Domestic Product GDP increased by 0.5 per cent in the first quarter of 2011.

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2011-04-27 13:05:02 © Moneyextra.com