View more on these topics

Gross lending hits £11.6bn in October

The Bank of England’s latest figures for lending to individuals show gross lending in October was £11.6bn up from £11.3bn in September.

The was against repayments of £11.1bn giving a net increase of £500m.

But experts are predicting that overall lending could be set for a bigger rise after approvals rocketed by 3,000, from 50,415 in September to 53,000 in October. By value rose from £7.4bn the previous month to £7.7bn in October.

The number of remortgage approvals increased fractionally from 28,588 in September to 29,358 but was static by value at £3.9bn.

And the number of approvals for other purposes decreased slightly from 15,957 in September to 14,981 in October and remained below the previous six-month average of 16,484.

Overall lending to individuals, which includes both unsecured and secured lending, fell by £300m in October, but this came after a massive £1.7bn increase in September.

Capital Economics economist Samuel Tombs says: “Total lending to individuals fell by a monthly £0.3bn, led by a decline in unsecured lending. That said, this represents only a small step back from September’s chunky £1.7bn rise, which was the largest for four years.

“What’s more, mortgage approvals for new house purchase rose from 50,400 in September to 53,000 – the highest level since August 2011. So overall lending might start to rise again soon.”

However Tombs says he expects the recovery in lending to remain sluggish.

He adds: “Even if the supply of credit continues to improve, we expect demand for it to remain weak as households continue to focus on reducing their debt



Abbey launches new 7-day-only mortgage deal

Abbey for Intermediaries is set to launch another seven-day mortgage sale with the introduction of a 2.89 per cent two-year fixed rate available up to 75 per cent loan-to-value.

HSBC 480

HSBC launches 1.99% mortgage

HSBC is launching a direct-only two-year fixed rate of 1.99 per cent up to 60 per cent LTV.


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now