Mortgage Lending Slows
Friday April 4th 2008
The number of mortgage loans approved fell during February, according to new figures from the Bank of England, dropping to 73,000 from 74,000 the month before.
Mortgage lending totalled £7.4 billion for the month, on a level with the previous month but down on the six-month average of 8.2 per cent.
Annual growth rate was recorded as 9.4 per cent, down from 9.7 per cent the month before.
The number of remortgaging loans approved also declined in February to 111,000 down from 118,000 in January.
Secured loans for other purposes, however, increased in number to 62,000 from 60,000 the previous month, to a value of £2 billion in February.
Also up significantly for the month was consumer credit, according to the Bank's figures. Net consumer credit totalled £2.4 billion, up from £900,000 in January.
First Direct this week became one of the latest mortgage lenders to withdraw products from the market amid the credit crunch, announcing it will no longer be lending to new customers.