You are here: Home - Mortgages - First Time Buyer - News -

Bank mortgage lending up 52% year-on-year

0
27/05/2014
Total mortgage lending by high street banks was 52 per cent higher in April than 12 months ago, figures from the British Bankers' Association (BBA) have shown.

Increased demand for borrowing, fuelled by the Help to Buy and Funding for Lending Schemes and a buoyant buy-to-let market has pushed up the overall stock of mortgages.

Throughout much of 2013 net lending contracted but the BBA’s statistics show that over the last year the stock of mortgages funded by banks has increased by 0.7 per cent.

However, mortgage approvals dipped in April compared to the previous month falling from a value of £11.1bn in March to £10.5bn, but compared to April 2013 approvals have risen by 25 per cent.

House purchase approvals took the biggest dive falling from 45,045 in March to 42,173 in April.

Remortgage approvals remained largely the same in both value and volume.

This fall coincides with the introduction of the Mortgage Market Review (MMR) rules, which came into force on 26 April. Under the changes implemented by the Financial Conduct Authority, borrowers face tougher affordability checks from lenders to ensure people only take out a mortgage they can afford.

Jonathan Harris, director of mortgage broker Anderson Harris, said: “The introduction of the Mortgage Market Review may be having an effect: while it’s still early days, with many lenders introducing the new rules weeks ahead of the official launch, its’ impact may already be starting to be felt.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week