Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle SeasonalStock Market Awaiting the Bonds Panic to trigger QE4Ever - 30th April 25 Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Awaiting the Bonds Panic to trigger QE4Ever - 30th April 25
US Bond Market Panic Continues Towards May Expected Japanese Rate Hike Volatility Spike - 24th April 25
Stock Market Tarrified as President Dump Risks Turning Recession into Stagflationary Depression - 21st April 25
President Dump Delivers BEAR MARKET - Stock Market Battles Between Order and Chaos - 7th April 25
Stocks Bull Market End Game Bear Start Strategy - 20th Mar 25
Gold and System Collapse: Charting the Bank Run of the Mighty US Dollar - 20th Mar 25
Tesla's Troubles — Is it Musk or is it More? - 20th Mar 25
The Stock Market Bear / Crash indicator Window - 9th Mar 25
Big US Tech Stocks Fundamentals - 9th Mar 25
No Winners When The Inflation Balloon Pops - 9th Mar 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Mortgage approvals weaken in the face of rising costs and House prices

Housing-Market / UK Housing Apr 01, 2007 - 12:49 PM GMT

By: Sarah_Jones

Housing-Market Following last week's release of MBBG net lending figures for February, further information now available on lending to individuals shows that:


  • February's gross mortgage lending was £14.9bn, 7% more than the £14.0bn in February 2006. In line with seasonal patterns, February was well down on January's £16.6bn.
  • There were 167,000 mortgages approved (for all purposes) in February. Earlier house purchase approvals data have been re-stated from last months release to allow for the one-off cancellation of about 5,000 approvals in January. The average loan approved for house purchase was £150,400, some 14% higher than a year earlier. It has taken just under 4 years for the average loan size to rise from £100,000 to £150,000, having taken around 9 years to double from £50,000 to £100,000.
  • Underlying net mortgage lending (gross lending minus repayments and redemptions) rose by £5.2bn, less than the recent average of £5.7bn and Januarys increase of £5.4bn. The annual growth in net mortgage lending continued at around 14%.
  • Credit card borrowing was unchanged in the month, while other loans and overdrafts fell by £0.2bn.

David Dooks, BBA director of statistics, said:

"The UK's shortage of housing market supply is clearly evident in the mortgage approvals data. The last £50,000 rise in the average house purchase loan has occurred more than twice as quickly as the previous £50,000 increase. Demand appears to be moderating however, as the monthly number of house purchase approvals was lower than a year earlier for the third month running and net lending was below trend in February.

Reflecting tighter conditions for personal disposable income, consumer credit continues to be weak."

Mortgage Lending

When compared to February 2006, house purchase approvals were down 5% by number though up 8% by value; remortgaging approvals were up 6% by number and up 22% by value; and approvals for equity withdrawal were unchanged by number but 10% higher by value.

Consumer Credit

New borrowing on credit cards totalled £6,224mn in February; 7% lower than February 2006. After seasonal adjustment, underlying net lending decreased by just £4mn.New lending on personal loans and overdrafts in February was also lower than February 2006 and after seasonal adjustment, net lending fell by £183mn compared with a recent monthly average rise of £225mn.

For further information, please contact:
Brian Capon, Head of media relations (020 7216 8810 brian.capon@bba.org.uk )
David Dooks, Director of Statistics (020 7216 8837 david.dooksd@bba.or.uk )


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in