Demand for mortgages still strong

28 September 2003
Demand for mortgages remains robust for the second half of the year, with significant increases since 2002, according to the latest industry figures.

Gross mortgage lending peaked at over £16 billion in August, marking a 12 per cent increase on figures for the same period last year.

The figures released by BBA suggest that UK homeowners are fuelling this growth; over 50 per cent of all loans for the period being taken out for property purchase.

A total of 268,200 mortgage loans were approved during August, 26 per cent more than last year's figure, but a slight decrease on figures from July.

'The overall picture from these figures shows borrowers' confidence in the housing market holding up,' explained David Brooks, BBA director of statistics.

'The higher volume of loans approved for house purchase in July was repeated in August,' he added.