Net mortgage lending increases

People looking for cheap mortgages may be interested to hear that annual net house purchase lending increased in February.

The UK banking and financial services trade organisation the British Bankers' Association BBA revealed that net mortgage lending has experienced growth of 2.5 per cent over the last year.

However, mortgage lending overall increased by only 0.7 per cent in the year to January.

"Mortgage lending remains subdued, with only remortgaging on an upward trend, as borrowers lock into lower rate products currently available. Household demand for unsecured credit is also weak, as people continue to … build up deposits," BBA statistics director David Dooks explained to those looking for a cheap mortgage.

Figures from the company revealed that remortgaging has hit a 19-month high in February as people take advantage of the low rates to get a cheap mortgage deal.

A total of 27,144 people switched to a new mortgage during the month, the highest number since July 2009.

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2011-03-23 12:47:54 © Moneyextra.com