UK Mortgage Lending Jumps $4.6bn in August: BBA
Gross mortgage lending in the United Kingdom surged in August, jumping by £2.8bn ($4.6bn) from July when volume dipped, according to a report by the British Bankers’ Association (BBA). Despite analysts pointing to an impending recovery in the US housing market, Moody’s expects the UK financial sector to take on more damage as the foreclosure crisis continues. The BBA’s report, however, sheds some optimistic light on the future as mortgage lending grew by 4.6% over the last year. And going ahead, the number of loans approved for house purchase continues to stabilize, according to the report. “Loans approved for house purchase have recovered to early-2008 levels, but low levels of customer demand and a limited number of properties coming onto the market will continue to moderate lending,” said David Brooks, BBA statistics director. Brooks added that in August, lending expanded to a range of company sectors, with manufacturing and construction showing net repayments. “The main high street banks’ mortgage lending has stabilized in a market where other lenders are largely inactive,” Brooks said. Write to Jon Prior.