BBA reports fall in mortgage lending

Mortgage lending rose at its slowest rate for nine years during April, according to latest figures from the British Bankers' Association BBA.

Net lending, which does not include redemptions and repayments, stood at £1.83 billion last month, the lowest level since February 2001.

Mortgage approvals for house purchase remained low during April at 35,729, down on the 45,822 seen in December.

"Household priorities are clearly reflected in these latest data, with people paying down debt rather than building up savings, even in the main Isa season," said BBA statistics director David Dooks.

"Uncertainties about the impact of government policies and the economy on households and businesses will continue to dent consumer confidence and influence decision-making."

Mr Dooks claimed that overall lending to companies remains subdued, although he said that the annual rate of contraction appears to have bottomed out.

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2010-05-27 12:42:57 © Moneyextra.com