Net mortgage lending edged higher in January, says BoE
By myfinances.co.uk staff
The flow of net mortgage finance edged higher in January, despite an overall decline in gross lending figures, the Bank of England has said.
According to figures in its latest Trends in Lending report, the net flow of secured loans stood at £1.5 billion in the first month of the year, up from £1.2 billion in December.
The Bank said that gross lending for housing purchase "picked up slightly" in February after a sharp decline the month before, but activity in the remortgaging market remained low.
Nevertheless, lenders said demand for secured lending from people looking to buy a home remained weaker than expected last month.
According to the Bank, many mortgage providers attributed much of the recent slowdown in gross lending and approvals for house purchase to "one-off factors", such as the bad weather and the end of the stamp duty exemption for properties valued at between £125,000 and £175,000.
Although these factors have now receded, lending is still being affected "given the lags involved" in the market.
Recently published figures from the Council of Mortgage Lenders put gross mortgage lending at £9.2 billion in February.
Comments
Newsletter sign up