View more on these topics

Net mortgage lending falls to -£73m in May

Net mortgage lending fell to -£73m in May as mortgage repayments outstripped gross mortgage lending, according to the British Bankers’ Authority’s latest figures.

This is the first time that net lending has dipped into minus figures since the BBA first started compiling its figures in September 1997.

Even when the credit crunch first hit in 2008 and 2009, net mortgage lending each month fluctuated each month between £5bn and £2bn.

But in June 2011 it sunk below the £1bn mark and since then it’s varied on a monthly basis between £300m and £900m.

Last month in April net mortgage lending was £516m before dropping to -73m in May.

Overall gross mortgage lending of £7.9bn in May was below the six month average as the housing market continued to see subdued activity.

The BBA says: “Historically, the difference between gross lending and capital repayment produced significant increases in net lending each month.

“With a stable level of gross lending, but a rising trend in capital repayment, reflecting low interest rates, the difference has gradually narrowed to the point in May where repayment exceeded lending.”



Rental britain

Owning a mortgage could become just a distant dream for many people as rising costs and shrinking supply mean they will be bound to rent all their lives


The Mortgage Mole

Eye on the prize Could it soon be Sir Hector Sants? The outgoing chief executive officer of the Financial Services Authority may have failed to predict or deal with the fall-out of the credit crunch in 2008, but one of his last acts, as head of the failed regulator, could pay dividends. As the FSA […]

Shine: How to survive and thrive at work

Here’s a tip. If Bono, the lead singer of U2, ever marches up to you and asks “who’s Elvis round here?” do not point him in the direction of the guy in the corner with the large quiff or the obese chap in finance who constantly munches burgers.


MS Leader: Come clean on housing

Is the future for the UK housing market renting? That’s been the conclusion of a number of recent economic studies into property ownership over the next decade and in Mortgage Strategy’s cover feature this week on page 20, we take an in-depth look into where the market is heading.

India budget: BJP focuses on growth

By Kunal Desai, Head of Indian Equities

With markets kept open on Saturday, finance minister Arun Jaitley delivered a promising budget focused on growth and decentralisation. While many complained about a six-day working week, there was much to be pleased about and the markets rallied in the afternoon to finish in the green.


News and expert analysis straight to your inbox

Sign up