News: BBA reports demand for mortgages remains subdued

Thu, 24 Nov 11

Despite a slight increase in mortgage lending last month, the market remains subdued as borrowers adopt a ’wait and see’ approach to purchasing or struggle to get hold of good deals.

The British Bankers Association (BBA) has released new figures showing that there was gross mortgage lending of £8 billion in October 2011, slightly lower than in September but four per cent higher than in October 2010.

However, because capital repayment is continuing at a high level, net lending for home loans actually increased by only £0.9 billion.

The average value of a mortgage was £145,000, very similar to the price recorded a year ago, although approvals were 16 per cent higher last month than in the corresponding period for 2010.

Source: Finances.co.uk

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