BBA reports fewer mortgage approvals

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BBA reports fewer mortgage approvals

Thu 27th Sep 2007

The value of gross mortgage lending reached £21 billion in August, which reflects a one per cent year-on-year rise, according to new figures from the British Bankers' Association (BBA).

However, the number of mortgages approved for houses fell by 14 per cent compared to the same time in 2006. A total of 61,051 mortgages were approved for this purpose, which the BBA said reflected the weakest figure in seven years.

David Dooks, BBA director of statistics, said that stronger gross lending was expected for the month.

"Other than the current spate of remortgaging, loan approval numbers also endorse our view that customer demand was starting to moderate even before the September difficulties in the financial markets," he commented.

Meanwhile, new lending on personal loans and overdrafts in August was revealed to be 11 per cent lower than the year before.

The BBA's members, which come from 60 different countries, contribute around £50 billion to the economy.

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