View more on these topics

BBA says mortgage lending slowed in December

The UK mortgage market experienced a slowdown in December, with lending falling significantly from its record level of the month before, figures released by the British Bankers&#39 Association revealed.

The BBA, which published its monthly report on lending by the major British banks yesterday, says that mortgage lending stood at £5.08bn in December, down from £5.8bn in November and £5.6bn in October. CML figures also showed a slight decrease in lending over December.

Steven Pitkeathley, executive director of the BBA, says: “Whether slower mortgage growth in December was because homebuyers were backing away from current property prices or whether equity withdrawal is moderating remains to be seen. One month&#39s figures cannot be viewed reliably as a trend change.”

Elsewhere in the lending figures, borrowing on credit cards during December remained in line with previous months, increasing by £306m. However, other unsecured lending, including personal loans and overdrafts, soared by £851m – although the severity of this rise was mitigated somewhat by the fact that it followed November&#39s rise of just £382m, the smallest since September 2000.

Pitkeathley adds: “It seems that in spite of some predictions, consumer borrowing, particularly on cards, didn&#39t go overboard at Christmas, with people preferring to use cash or deposits for spending.”

Recommended

No learning infrastructure to support new exams regime

From Rod WilliamsI read with great interest the letter submitted by Michael Lawrence (Mortgage Strategy January 6). I am almost 59 years old and, like Mr Lawrence, an IFA with over 30 years of experience in the financial services industry. During this time, I think I have provided good reliable advice to my clients on […]

Product changes at Irish Permanent

Irish Permanent has announced a range of product improvements designed to build market share in both the buy-to-let and home loan sectors. The lender, whose UK base is in Hammersmith in London, is putting the changes in place following extensive consultation with intermediaries. They comprise loan-to-values lifted to 85% of £1m for buy-to-let; rent cover […]

BMS is first sub-prime lender to join ZAN panel

BM Solutions has joined ZAN Mortgage Solutions, the Zurich Advice Network mortgage panel, writes Helen McCormick. ZAN is one of the UK&#39s three largest mortgage clubs, along with Prudential&#39s Premier Mortgage Services and Legal & General&#39s mortgage club. BM Solutions is the 16th addition to the Swindon-based panel and the only sub-prime lender. ZAN mortgage […]

Stroud and Swindon launches new fixed rate mortgage range

Stroud and Swindon Building Society is launching two three- and five-year fixed rate mortgages. Available from 24 January, the three-year product is fixed at 4.44% and the five-year at 4.74%. An early repayment charge is only made within the fixed rate period, and borrowers can repay up to 25% of the loan without charge at […]

Get your New Year off to a flying start

Ross Jackson, Senior Marketing Manager There’s no denying that these days we expect things quickly. You might have noticed it first-hand during the flurry and rush of the Christmas period. The fact is that in a world of smartphones, social media and click and collect, most clients expect to get an instant response and a […]

Newsletter

News and expert analysis straight to your inbox

Sign up