The British Bankers’ Association (BBA) is reporting strong levels of mortgage borrowing into the end of the year, comparatively higher than like figures for 2005.
According to BBA reports, gross mortgage lending in October was £18.9 billion, six per cent higher than in September and eight per cent higher than in October 2005.
These figures are indicative of continued buoyancy in the UK housing market with strong demand for properties and high mortgage approval levels.
To this end, the BBA also found that over 198,000 mortgages were approved in October at a total value of £21.8 billion, 15.5 per cent more than last year.
BBA director of statistics David Dooks comments that activity in the UK housing market might not have increased significantly since 2005, despite high borrowing levels – which will have included those looking for the best mortgage rate.
“The secured lending market undoubtedly remains robust, but after discounting price growth, lending volumes are not dissimilar to the same time last year,” he explains.
“October’s loan approvals were boosted by remortgaging, as customers look to fix or reduce their mortgage costs, but this activity, with customers changing their lender, has no significant effect on net lending marketwide.”
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