Mortgage lending up by £1.7 billion in December

 

Mortgage lending ended last year on a high, marking a year-on-year increase of 0.7 per cent, according to the Bank of England's latest figures.

Total lending to individuals (excluding student loans) rose by £1.7 billion in December compared to the previous six-month average increase of £0.5 billion.

Within total lending, lending secured on dwellings rose by £1.0 billion, compared to the previous six-month average increase of £0.4 billion.  The three-month annualised growth rate was 0.4% and the twelve-month growth rate was 0.6%.

Gross lending secured on dwellings was £12.4 billion in December, compared to the previous six-month average of £11.7 billion.  Repayments in December were £11.9 billion, compared to the previous six-month average of £11.2 billion.

The number of loan approvals for house purchase (55,785) increased in December and was higher than the previous six-month average (50,058). The number of approvals for remortgaging (28,196) decreased slightly in December but was still above the previous six-month average (27,301). The number of approvals for other purposes rose slightly in December (14,640) and remained below the previous six-month average (15,471).

Consumer credit (excluding student loans) increased by £0.6 billion in December (Table D), above the previous six-month average of £0.2 billion. The twelve-month growth rate rose to 0.9%.  Within consumer credit, credit card lending increased by £0.2 billion and other loans and advances increased by £0.4 billion.

Paul Hunt, managing director of Phoebus Software said: "The Funding for Lending scheme is proving to be a strong foundation for growth in the mortgage market and this is now being reflected in lending data across the board. Despite the flat economy and demanding funding conditions, lending to individuals has grown over the second half of 2012, while at the same time the number of loan approvals for house purchase has edged up in December, bringing the year to a healthy close. A raft of cheaper, more attractive deals are launching and I expect continued strong improvements to lending levels throughout 2013."

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