Growth in mortgage lending stalls in November

7 January 2009

The growth in net mortgage lending stalled in November, rising by £2.9 billion compared with £3.3 billion in October, according to the latest figures from the British Bankers Association (BBA).

Approvals for all types of mortgages also fell last month, the organisation said.

In addition, consumer credit remained "subdued", with a rise of £0.2 billion.

BBA statistics director David Dooks said the drop in market activity was partly down to November`s 1.5 per cent cut in interest rates, which prompted some lenders to reassess their product ranges, while many borrowers had to re-consider future borrowing costs.

He added that with the volumes of approvals hitting new lows and property values continuing to decline, there are signs that househunters are staying away from the market despite lower costs because they remain concerned about the impact of the "rapidly slowing economy" on their personal finances.

"High street banks are still providing two-thirds of all new mortgage lending, although the overall market continues to shrink," Mr Dooks commented.

According to the BBA`s figures, £7.1 billion worth of mortgage loans were approved in November - down 51.6 per cent year-on-year.

Tags: mortgage, mortgages, mortgage news, mortgage lending

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