According to the BBA, mortgage lending by the high street banks and building societies has risen to £200 million in the month of April. Lending rose from 5.2 billion in March to 5.4 billion in April.The number of approvals also rose in this month along with re-mortgaging.  

The report comes as good news for the mortgage market as it shows that contrary to some reports, the UK mortgage market is fighting its way back to normality despite the credit crunch.BBA statistics director, David Dooks, said of the latest data: “Pressures on household finances, stalling house prices and tighter lending criteria in response to lower liquidity are all constraining demand for house purchase and equity withdrawal loans, which are both well down on levels last year. In contrast, there is an active remortgaging market as people switch lenders to obtain better deals. With some £18bn of new lending and nearly 150,000 loans approved in April, it is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt.”

Lucy Trueick