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Lending remains “subdued”
Tuesday, January 27th, 2009Net mortgage lending by the high street banks rose by £2.9 billion in December, new figures from the British Bankers’ Association (BBA) have shown.
This was lower than November’s levels and also below the previous six months’ average, the body noted.
It revealed that consumer credit remained "subdued", declining by £0.4 billion, while personal deposits increased by £4 billion.
However, the BBA stated that the latest figures are less indicative than previous reports due to the Bank of England base rate cuts and the turbulence in financial markets.
Statistics director David Dooks said that the data showed that mortgage lending has become more "concentrated".
"The banks approved less than half the 2007 number of loans for house purchase, reflecting falling demand from households facing greater economic uncertainty," he remarked.
Recently, the Treasury unveiled a comprehensive package of support aimed at helping banks through the economic downturn and boosting lending.
By Jamie Price
