MBBG reports highest ever lending month

28 July 2006
The Major British Banking Group (MBBG) has reported lending figures for June 2006 that are the highest on record.

Gross mortgage lending in the UK is estimated at £20.5 billion, 12 per cent higher than the previous month and up 24 per cent, year-on-year.

House purchase loan approvals were also significantly higher than this time last year – up 22 per cent by number and 27 per cent higher by value. Remortgaging approvals also rose, up by 11 per cent year-on-year by number and 23 per cent by value.

"Gross mortgage lending reached record levels in June," said David Dooks, director of statistics for the British Bankers' Association (BBA).

"[However], the relatively strong retail sales reported for June do not seem to have been reflected in consumer credit lending, which has continued to show weakness, particularly in credit card borrowing, which has been apparent for most of this year."

Net lending on loans and overdrafts rose by £0.2 billion in June, around 50 per cent of the average rise over the past six months and significantly less than the £0.7 billion increase in May 2006.

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