Mortgage lending strong during November says BBA

Gross mortgage lending stood at £18bn in November, according to the latest figures from the British Bankers Association (BBA).

This was among the highest on record and 23% higher than the £14.6bn of November 2004 says the BBA. November’s gross lending was 2.5% higher than October’s total of £17.5bn.

Seasonally adjusted net mortgage lending, says the BBA, rose by £5.1bn, compared with £4.3bn in October and £4.1bn in November 2004. Again this was the strongest increase since July 2004 and compares with an average of £4.4bn over the previous six months.

There were 192,927 mortgage approvals in November, with a total value of £19.1bn. The number of approvals was virtually the same as October 2005 but 22% higher than November 2004. The average approval for house purchase rose to £130,800.

Compared to the same month a year earlier, November’s approvals of house purchase loans were 51% higher by number and 64% higher by value; remortgaging loans were 17% higher by number and 34% higher by value; and equity withdrawal loans were 1% higher by number and flat by value.

David Dooks, BBA director of statistics, says: :”Gross lending on mortgages reached a very high level in November confirming the recovery in the housing market after a relatively weaker early part of the year. Approvals, particularly for house purchase, continued to be strong with little evidence of the normal seasonal slowdown.