November net mortgage lending up £2.9bn

Monthly net mortgage lending rose by £2.9bn in November, reports the British Bankers\' Association.

The trade body says the rise is less than that of October and remains below average net mortgage lending for the past six months.

The BBA also says that approvals for all types of mortgage loans fell below October levels to £7.1bn from £11bn in October.

The figure represents a 51.6% drop from November 2007.

David Dooks, statistics director at the BBA, says: “High street banks are still providing two-thirds of all new mortgage lending, although the overall market continues to shrink.

“The 1.5% November reduction in Bank Rate caused lenders to re-assess product ranges and borrowers to re-consider future borrowing costs, so consequently there was another drop in market activity.

“Volumes of mortgage approvals reached new lows and, with house prices still falling, the encouragement of lower costs had not filtered through by the month-end, largely because people remain concerned about the impacts of the rapidly slowing economy on their personal finances.”