Mortgage lending ‘on the rise’

Mortgage lending is continuing to increase slowly and steadily, the British Bankers’ Association (BBA) has revealed.

Data from the BBA for October has shown that the annual growth in lending now stands at 4.6 per cent, after last month saw a £3.1 billion increase in lending.

This figure matches September’s rise and was above the six-monthly average of £2.7 billion.

Such an increase contrasts with falls in unsecured lending by consumers, BBA director of statistics David Dooks observed.

Royal Institution of Chartered Surveyors chief economist Simon Rubinsohn said the figures showed that mortgage availability has been increasing of late.

He added there is “some evidence of a modest relaxation in the strict control on loan– value ratios for first-time buyers.”

However, Mr Rubinsohn stated, the continued recovery of the property market in the months ahead will depend just as much on a greater supply of homes on the market as increases in mortgage availability.

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