BBA's data reveals lending is down

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BBA's data reveals lending is down

Wed 23rd Apr 2008

The British Banker's Association's (BBA) roundup of March data from the major high street banks did not reveal anything unexpected.

In line with the overall depression in the housing market, net mortgage lending weakened and all forms of mortgage approvals declined.

Meanwhile, credit card lending inched up slightly, as other forms of unsecured lending decreased from 0.5 billion net in February to 0.2 billion last month.

Personal deposits have continued the recovery they begun at the start of this year, after dipping in September 2007, to come back in line with long-term averages.

David Dooks, statistics director at the BBA, blamed pressures on personal finances for constraining demand for mortgages, personal loans and credit card borrowing.

He added: "The consequences of low banking sector liquidity show up clearly in March data; reduced product ranges and tighter criteria resulted in slower mortgage lending and significantly fewer loan approvals."

The credit crunch has forced many lenders to tighten their criteria, making it harder for consumers to access credit.

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