Mortgage lending outstrips overall market lending
26th Jan 2012
Annual growth of 1.5 per cent in the banks' net mortgage lending continued to outstrip annual growth of 0.6 per cent across the whole lending market in December, the latest industry figures have revealed.
Data issued by the British Bankers' Association showed that December's £9 billion of new mortgages was the strongest month of last year, being 12 per cent higher than in December 2010.
Commenting on the figures, BBA statistics director David Dooks said that the figures are welcome, but it is worth noting that at the same time the household sector generally is focusing on debt repayment amid inflated household expenses.
This continued air of uncertainty may lead to a reluctance to let net borrowing rise in the industry, with people preferring to use their bank account cash for expenditure.
"Business prospects are even more attuned to the state of the economy in the UK and in overseas trading markets, with borrowing intentions for growth or investment plans generally staying on the back-burner," he added.
It comes after figures published by the Council of Mortgage Lenders, which recorded a four per cent rise in mortgage completions in November, compared to October.
Meanwhile, Catherine Hearnden, director at MyMortgageDirect, recently said that UK property owners or those looking to take a step on the housing ladder may find that track and fix hybrid mortgages are a "very good option" at the moment.
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