Banks’ gross mortgage lending drops to £8.4bn in July

Gross mortgage lending at banks was £8.4bn in July, slightly below the previous six months’ average o f £8.6bn, reports the British Bankers’ Association.

High street banks net mortgage lending increased by £2bn in July compared to £2.1bn in June and £2.2bn in July 2009.

Annual growth in banks’ mortgage lending is 4.1%  which is 0.9% above the whole mortgage market in June.

The BBA statistic show that the abolition of home information packs has had no obvious impact on house purchase approvals which declined in July.

The average value of house price purchase approvals stands at £148,500, slightly down on June but 4.6% higher than a year ago.

Remortgaging approvals stood at 21,908 and equity release at 18.221, both at similar levels to June and the previous six months.

David Dooks, statistics director at the BBA, says: “Gross mortgage lending remains stable, although demand for

mortgages continues to be subdued. The greater availability of

properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals.”