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House purchase loans approvals drop 30%

The total amount of house purchase loans approved by banks has fallen 30.1% in the 12 months up to February this year, new figures reveal.

Statistics from the British Bankers’ Association show the amount of house purchase loans approved by banks dropped £3bn, from £10bn in February 2007, to £7bn in February this year.

But the amount of net mortgage lending by banks strengthened in February, the BBA says.

The BBA’s research shows that net mortgage lending by UK banks increased from £5.0bn in January to £5.6bn in February.

The association says the figures reflect a rise in the banks’ market share as a result of recent strong remortgaging.

Credit card lending remained subdued, while personal deposits continued with above-average growth, the figures reveal.

David Dooks, statistics director at the British Bankers’ Association, says: “In an environment of tightening lending criteria, remortgaging either to fix, re-fix, or reduce borrowing costs has been a clear influence on mortgage data in the first two months of this year, resulting in mainstream lenders picking up market share.”

The BBA figures show gross lending was slightly weaker than January but stronger than the recent six-month average.

The BBA says this partly reflects strong remortgaging approvals, which feed through to gross lending much sooner than approvals for house purchase.

Gross mortgage lending by banks was down £200m from £18.1bn in January to £17.9bn in February.

But the amount of mortgage loans approved increased from £19.7bn in January to 18.8bn last month.


Lehmans weighs up lending suspension

Lehman Brothers is considering suspending lending at its two UK mortgage lending divisions Southern Pacific Mortgage Limited and Preferred Mortgages.Rumours were rife this morning among packagers that Lehmans was looking to suspend lending and a source close to the firm confirmed that this was one of the options it was considering.No further information was available […]

Nationwide cuts packager panel for specialist brands

Nationwide has cut its packager panel for The Mortgage Works and UCB Home Loans, down from 50 to 20 firms.Paul Howard, director of sales for Nationwide specialist lending, which comprises TMW and UCB Home Loans says that with less business being done in the sub-prime sector it was an unavoidable decision.He says: “We have trimmed […]

Rob Jupp

I have read with interest the article regarding the research data about customer retention. It indicated that only 40% of clients who go back to the same lender will use their original broker to secure the deal. I really hope that the statistics for clients remortgaging with another lender or purchasing another property are not […]

44% of FTBs willing to go overseas to get on ladder has revealed that 44% of Brits would move overseas to get a foot on the property ladder.The price comparison site carried out research on the attitudes of first-time buyers and their views on buying foreign property.The website highlights that last year, National Savings and Investments found that 25% of the British people would consider […]

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery


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