RTTNews - Thursday, data released by the British Bankers Associaton showed that the number of mortgage approvals, on a seasonally adjusted basis, rose to 35,235 in June from 31,919 in May.
Approvals increased for the third straight month and the June number is the highest since March 2008, when approvals totaled 35,863.
Mortgage lending grew GBP 2.6 billion in June, larger than the GBP 2.4 billion increase witnessed in May. Yet, the growth is below its six-month average of GBP 3.1 billion. The annual growth in lending was 5.1% in June.
Gross mortgage lending totaled GBP 7.9 billion in June, slightly more than the GBP 7.8 billion in May. This is also below its six-month average of GBP 8.9 billion and 45.8% less than the same month last year.
Consumer credit was down GBP 0.1 billion in June, the same as in May. Personal deposits grew GBP 3.2 billion, greater than the GBP 0.3 billion in the previous month.
BBA statistics director, David Dooks said, Numbers of new home loans approved by the high street banks are recovering from the very low
level last November and so far this year, gross mortgage lending has topped GBP 50 billion. He noted that after repayments and redemptions, the banks' net rise in mortgage lending of GBP 18 billion in the first six months is in sharp contrast to lending by the rest of the market, which is still contracting.
People are showing little appetite for unsecured borrowing and are generally keeping more money in their accounts, Dooks said.
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