Mortgage lending 'flattens'

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Mortgage lending 'flattens'

Thu 19th Jul 2007

Mortgage lending has risen by an underlying £5.1 billion in June, according to the latest figures released by the British Bankers' Association (BBA).

The BBA's research shows that this represents a decrease from the £5.8 billion in May and an underlying average of £5.3 billion.

Unsecured personal borrowing remained fairly consistent over the period of June, having fallen by £0.5 billion in June.

Commenting on the monthly figures, David Dooks, director of statistics at the BBA, said: "The contrast between May's strong rise in mortgage lending and a much weaker figure in June makes it difficult to gauge the current impact of higher interest rates on mortgage demand but we've seen the trend gradually slowing since the turn of the year."

He added: "Consumers' appetite for unsecured borrowing on cards, loans and overdrafts remains relatively flat and with personal deposits holding up, household budgets, though clearly tightening, seem to be in good shape."

According to the Council of Mortgage Lenders, gross mortgage lending reached a new record of £34.2 billion in June, up from £31.4 billion the month previously.

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