Mortgage lending plummets year-on-year in January
Monday, 25 Feb 2008 12:22
New mortgage approvals down in January against last year, figures show
The number of new mortgages taken out with major banks in January was 31 per cent down compared to last year, figures showed today.
According to the British Bankers' Association (BBA), mortgage approvals stood at 44,288 last month, which represented a slight strengthening on December's total of 42,343.
But while new mortgages slumped compared to January 2007, approvals for remortgaging were "exceptionally strong", BBA reported.
Its data showed approvals rose to 79,016 in January from 67,535 in December, representing a 39 per cent rise on the corresponding period in 2007.
"Higher gross mortgage lending in January largely reflected very strong remortgaging activity, as borrowers sought out the best deals available," David Dooks, BBA director of statistics, said.
"Although house prices and new loans for house purchase, appear to be subdued as the housing market slows, the strength of remortgaging would suggest competition for mortgage business and switching remains high."
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