July's personal lending figures down

Gross mortgage lending reportedly fell slightly between June and July this year to £16 billion, new industry figures reveal.

Data from the British Bankers' Association reveals that gross mortgage lending last month was 11 per cent lower than in July 2004.

There were 181,933 mortgage approvals (for all purposes) in July 2005, with a total value of £17.1 billion, seven per cent lower than June and 17 per cent below July last year. The average approval for house purchase was £132,700.

Seasonally adjusted net mortgage lending (gross lending minus repayments and redemptions) rose by £3.7 billion, compared with £4.7 billion in June and £5 billion in July 2004.

According to the BBA, lending on loans and overdrafts rose by £0.3 billion in July, from a virtual standstill in June, down from an average increase of £0.5 billion in the previous six months. Borrowing on credit cards increased just £0.1 billion.

David Dooks, BBA director of statistics, said: "July's rise in net mortgage lending was the weakest since December 2001 but the weakness resulted largely from higher than usual levels of redemptions, particularly relating to maturing fixed rate loans. Together with relatively slow approvals, it reiterates the subdued mortgage environment of late."