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Mortgage lending weakest since 2001
May saw the weakest monthly rise in mortgage lending since 2001, reaching only £2.3bn during the month, the British Bankers Association (BBA) said today (23 June).
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According to the latest statistics from the BBA, net mortgage lending in May fell to £2.3bn, compared with £2.5bn the month before.
This also compares with the previous six months average of £3.2bn.
Mortgage approvals increased over the month of May to total 31,162, up from 29,018 in April. This represented a total increase of 15.8 per cent when compared with the same month last year.
Elsewhere, personal deposit inflows continued to be weak in May and consumer credit growth was minimal.
Lending to financial companies rose to £5.2bn while lending to non-financial companies changed little overall.
David Dooks, statistics director at the BBA, said: "Steady monthly increases since last November have seen the number of loans approved for house purchase recover to levels seen in early 2008.
"However, unlike much of the mortgage market, the high street banks are still seeing lending growth and improved mortgage availability is reflected in higher average loan approval values.
"Consumers' borrowing appetite remains weak, reflecting uncertainty over household circumstances, so credit growth is negligible and spending activity on credit cards is down on this time last year. Lending to non-financial companies was little changed overall in May."
