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News: No sign of mortgage lending slowdown

Updated figures from the MBBG (Major British Banking Groups) show no sign of a slowdown in mortgage lending - gross lending in September coming in at £17.817 billion. Or 5.7% higher than August's £16.848 billion, and 9.3% up on the £16.304 billion witnessed in September 2004.

Seasonally adjusted net mortgage lending rose by £4.899 billion, compared with £4.393 billion in August. The September rise was stronger than the average of +£4.364 billion in the previous six months, producing an annual growth rate just below 12%.

Compared to the same month a year earlier, September's approvals of house purchase loans were 17% higher by number and 37% higher by value; remortgaging loans were 3% higher by number and 23% higher by value; and equity withdrawal loans were 13% lower by number and 5% lower by value.

Elsewhere, new borrowing on credit cards totalled £7.453 billion in September. This was 8% lower than the previous month. However after seasonal adjustment the increase in net lending of £108 million compared with a recent average increase of +£75 million.

New lending on personal loans and overdrafts was slightly down on the average for the previous six months, at £2.747 billion, but after seasonal adjustment, there was a rise in net lending of £352 million.

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