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Net lending to individuals rises by £0.3bn in July

Net lending to individuals rose by £0.3bn in July with the 12-month growth rate unchanged at 0.8%.

The three-month annualised growth rate fell to 0.5%, from 0.6% in June.

Within the total, net lending secured on houses increased by £0.1bn below the June increase of £0.5bn and the previous six-month average of £0.8bn.

The 12-month growth rate rose slightly in July to 1%, from 0.9% in June and the three-month annualised growth rate decreased to 0.4%, from 0.6% in June.

The number of loan approvals for house purchase  was 48,722, similar to the June figure of 48,562 and the previous six-month average of 48,546.

Approvals for remortgaging stands at 26,951 were up on June and also higher than the previous six-month average  of 26,235, while approvals for other purposes were 24,220, a decrease in July and were also below the previous six month average of 24,831.

Grenville Turner, chief executive of Countrywide, says: “It is a little surprising to see the rise in mortgage approvals, however, these figures cannot hide the difficulties facing the current housing market.

“Whilst our mortgage approval levels year to date have risen by 11% the stark reality is that getting a mortgage is tough as buyers continue to struggle to raise the deposits required or are put off by the interest rates attached to the high LTV mortgages.

“But there are glimmers of hope as a number of lenders appear to be increasing their lending appetite with an increasing variety of mortgage products becoming available.”

Consumer credit rose by £0.2bn in July, in line with the previous six-month average and above the June decrease of £0.1bn.

Credit card lending increased by £0.2bn, in line with the previous six-month average; other loans and advances remained stable, also in line with the previous six-month average.

The annual growth rate of consumer credit rose to 0.2% and the three-month annualised growth rate rose to 0.9%.

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