UK mortgage lending starting to edge upward
MORTGAGE lending and lending to businesses picked up in March.
The number of new house-purchase mortgages totalled 38,751 in March, up from February’s 37,453, according to figures released by British Bankers Association (BBA) yesterday.
It marks the highest level of monthly mortgages in six months.
The rise in the number of mortgages saw lending for house purchases climb to £6.5bn from February’s £6.3bn. However, the figure remains 12 per cent lower than last March.
According to one surveyor, the uncertainty of housing policies that could come after the General Election is being offset by record low mortgage rates.
“You can’t blame Britain’s prospective homeowners for being cautious. Housing has become a hotly contested political issue,” said Richard Sexton, director of e.surv Chartered Surveyors.
“Many buyers are laying low to see what happens. Despite this understandable damping effect, many prospective homebuyers are taking advantage of the unique opportunities provided by low interest rates and a mortgage price war between the major banks.”
Meanwhile, net lending to non-financial companies climbed to £1.6bn in March from minus £0.3bn in February – the highest level since 2009.
“We’re starting to see signs that businesses from many sectors are starting to borrow more from their bank. While it’s still too early to predict, these figures and the latest data from the Bank of England suggest that business borrowing has turned a corner,” said Richard Woolhouse, chief economist at the BBA.