BBA reports high-street mortgage lending rise

Mortgage lending strengthened slightly in December, the British Bankers' Association BBA has reported.

The organisation says gross lending was inflated by some borrowers pushing through purchases ahead of the end of stamp duty relief, although consumer credit was weak, in line with low retail sales volumes.

BBA statistics director, David Dooks, said the high street banks continued to lend "substantial amounts" in the weaker mortgage market of 2009, approving more than 440,000 loans for house purchases.

He added: "Their share of gross lending went up from a historical level of about two-thirds to three-quarters, due to specialist lenders largely withdrawing from the market and building society finance contracting.

"Households' unsecured borrowing contracted throughout the year, particularly on personal loans. After paying down debt, people sought to build up their savings."

Whole-market statistics published by the Council of Mortgage Lenders last week indicated that borrowing increased by 14 per cent during the final month of 2009, aided by the availability of more attractive mortgage rates.

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2010-01-27 13:04:36 © Moneyextra.com