Mortgage loan market booms

Tim Wallace
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MORTGAGE lending jumped strongly in May as government support encouraged banks to lend more, according to British Bankers’ Association figures out yesterday.

A total of 65,752 mortgages were approved in the month, up 4,490 from the previous month and up from the average of the previous six months which came in at 59,776.

By value gross mortgage borrowing rose £500m on the month to £8.6bn. However, net lending fell £500m as repayments exceeded new borrowing.

Unsecured credit increased, with net lending up £100m in May.

Meanwhile business lending tumbled again, with net borrowing down £1.7bn on the month.

“SMEs’ use of their own high levels of cash resources and large companies’ use of alternative finance means demand for bank borrowing is subdued,” said the BBA’s David Dooks.