Home Loan Approvals Double 2008 Levels

Wed, 25 Nov 2009

The number of home loans granted by UK lenders rose to its highest level in nearly two years, new figures have revealed.

According to the British Bankers' Association, home loan approvals grew from 42,073 in September to 42,238 in October - nearly double the number seen twelve months ago and the highest figure recorded since January 2008.

However, the BBA data revealed that while mortgage approvals rose, unsecured lending remained subdued as consumers focused on paying off debts and increasing savings .

Overall consumer credit lending, including credit cards and personal loans, fell by £100 million during October.

New spending on credit cards was down 8.2 per cent compared to a year ago and the BBA said demand for personal loans remained particularly weak, with outstanding loan debt falling by £2.9 billion in the year to October.

BBA statistics director David Dooks commented: "The longer it takes to emerge from recession, the longer we will see households and businesses continue to borrow with caution."

"The banks' mortgage lending, still growing by more than four per cent a year, shows one aspect of consumer behaviour, but unsecured borrowing is subdued."
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