Mortgage lending “levels off” in UK

Major banks mortgage lending has levelled off in July but the amount borrowed for day-to-day spending slowed according to today’s figures.

The amount lent for mortgages in July rose by £4.3bn, which was the same amount as in June according to the British Bankers Association (BBA).

However, there was a prompt warning about predicting a housing market recovery as there was still only a low number of mortgage approvals. The overall rise in consumer credit rose by £0.1bn which is down from £0.3bn in June.

The overall number of approvals for house purchases increased marginally in July from June but is still 65% lower than the same time last year.

It is still too early to suggest that the housing market is starting to recover but let’s hope approvals continue to grow in the coming months.