Print friendly version 23 Apr 2008

Mortgage and credit card lending declines

Mortgage and unsecured lending declined in March, according to the British Bankers’ Association (BBA).

Figures from the BBA showed that net mortgage lending increased by £5.1bn, down from £5.5bn in February, while consumer credit – credit card lending and unsecured loans – increased by £0.5bn, down from £0.7bn in February. Mortgage approvals on house purchases – which excludes remortgaging – were down 46.2% on last year’s figures.

David Dooks, director of statistics at the BBA, said: “The consequences of low banking sector liquidity show up clearly in March data; reduced product ranges and tighter criteria resulted in slower mortgage lending and significantly fewer loan approvals.

“Pressures on personal finances are also constraining demand, not only for mortgages, but also for personal loans and borrowing on cards.”

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