Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 6 days ago 74
The Bank of England statistics for lending to individuals – which covers homeowner loans and buy-to-let finance – showed net lending secured on dwellings increased by £0.1 billion, below the June increase of £0.5 billion and the previous six-month average of £0.8 billion.
The twelve-month growth rate rose slightly in July to 1.0%, from 0.9% in June.
The three-month annualised growth rate decreased to 0.4%, from 0.6% in June.
In July, 48,722 loans were approved for buying a home, which was broadly in line with the June figure (48,562) and the previous six-month average (48,546).
Remortgage approvals stood at 26,951 and were up on June and also higher than the previous six-month average (26,235), while approvals for other purposes – including buy-to-let – decreased in July to 24,220 and were also below the previous six-month average of 24,831.
Meanwhile gross mortgage lending by mutual building societies was £2.0 billion in July, the highest monthly figure so far this year, and 11% higher than the £1.8 billion lent in June, according to figures released by the Building Societies Association (BSA).
Mortgage approvals made in July amounted to £1.9 billion, the same as in June.
Adrian Coles, Director-General of the BSA, said: “Lending by mutual mortgage providers has picked up over the summer months, and the approvals figures suggest this level of lending may continue in the near future.
“Nevertheless, while the outlook appears a little brighter, there remain significant challenges such as heightened uncertainty about job prospects and household incomes, potentially limiting future demand. This could make it difficult to sustain the growth in activity.”
The Bank of England figures includes banks, financial institutions and building societies while the BSA report covers all 50 UK building societies.
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