Mortgage lending fell 37% in 2009
Share
Net mortgage lending was 37% lower last year than in 2008 and the number of approved loans fell below one million, according to the British Bankers’ Association.
The Annual Abstract of Banking Statistics reveals that since 2006 net mortgage lending has plummeted 90% - from £110.5bn to just £7.8bn last year.
Specialist mortgage lenders had a deficit of £20bn as lack of capital means they collect money rather than lend it. And while banks saw net lending of £36.3bn, building societies showed a negative figure of £7.6bn as they struggled for capital.
Banks’ balance sheets rose by 11% to hit £4.1trillion in 2009, with retail deposits reaching £1.5trillion.
The BBA report also reveals that repossessions increased by 15%, hitting 46,000 properties in 2009.
This represents 42 in every 10,000 mortgages, the highest proportion since 1995.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
