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Mortgage lending rises by £3.6billion

23 October 2008 / by Rachel Mason
Net mortgage lending rose by £3.6billion in September, according to the latest figures from the British Bankers' Association (BBA).

The number of mortgage approvals for house purchase rose from 21,342 in August to 23,422 in September, an increase of nearly 10 per cent.

Remortgage approvals were up 9 per cent, from 47,260 to 51,523.

But, despite the rises, the number of approvals for house purchase remained low, with the annual growth rate declining from 11.3 per cent to 10.7 per cent.

"It was not surprising to see continued low levels of mortgage lending and approvals in

September, ahead of the Government's banking support announcements," said David Dooks, of the BBA.

"Compared to a year ago, the mortgage environment has changed significantly, with supply restricted as a consequence of the situation in financial markets and demand at a much reduced level.

He continued, “pressure on household budgets, the slowing economy and fragile consumer confidence are suppressing consumer appetite for unsecured borrowing, but personal deposits across the high street banks held up.”

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