Mortgage Total Lending Increases Again

Total lending, according to the Bank of England in figures released today for January 2010, rose by £2.0 billion. The twelve-month growth rate rose to 0.8%.  The three-month annualised growth rate was 1.3%, a 0.4 percentage point increase from a revised 0.9% for December.

Within the total, net lending secured on dwellings increased by £1.5 billion above the December increase of £1.2 billion and the previous six-month average of £1.0 billion.  The twelve-month growth rate increased to 1.0%, from 0.9% in December. The three-month annualised growth rate rose to 1.4%.  The number of loan approvals for house purchase (48,198) was lower than the December figure (58,223) and below the previous six-month average (55,924); approvals for remortgaging (23,611) and for other purposes (23,035) were also lower than in December and lower than their respective six-month averages.

These slightly lower figures in terms of numbers of transactions are partly a reflection of the increase in the number of lower price transactions carried out to beat the change in Stamp Duty threshold for taxation on December 31st, 2009 as well as the slightly lower activity caused by the coldest winter spell for 30 years.

The size of the average mortgage provided therefore increased notably, as reflected in the market place with a greater level of market interest and transactions taking place in the middle and upper end of the market, as reported by many of the Chartered Surveyors of the Propertysurveying network.

01 March 2010