New figures from the British Bankers’ Association (BBA) have revealed that lending from high street banks fell to an eight year low in April. Demand for personal loans remains low, whilst gross mortgage lending fell to £7.9 billion in April, down by £800 million on the previous month and £2 billion below the six month average. The figure is 52.4% down on April last year. Meanwhile, the value of an average home loan for a purchase is down by 16.7% on last year, at £129,100.
There was some positive news, however, as the number of mortgages approved for house purchase rose to 27,685, up by roughly 1,000, and above the six month average of 23,812. Gross lending for house purchases also increased to £3.5 billion, up by £100 million, and £600 million above the six monthly average.
Experts suggested that the improved mortgage figures may indicate that the market has finally bottomed out, after a seemingly relentless series of interest rate cuts. Nicholas Leeming, director of Property finder.com, commented that the results were a clear sign that the outlook for the property market was improving.






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