Mortgage Industry News

← Back

Consumer appetite for cheap mortgages increases in January

Date: Tue, 28 Feb 2006

Consumer demand for cheap mortgage deals has increased since the start of the year.

New figures show that the number of mortgage approvals is remaining strong despite the rise in house prices. The Major British Banking Groups (MBBG) latest figures show that gross lending during January reached £14.5 billion – 25 per cent higher than in 2005, but just slightly higher than 2004 levels.

Last month saw 140,020 mortgage approvals as borrowers shopped around for the most competitive and cheap mortgages deals available. The average approval for house prices fell slightly to £126,800 as buyers continue to use large deposits to secure their new home – often funded via alternative loans or relatives.

David Dooks, British Banking Association's director of statistics, said: "Seasonally adjusted net mortgage lending fell back to around the recent trend in January and the level of approvals, in particular for equity withdrawal, held up well in what is traditionally a slow month."

He added: "Whilst credit card lending continued to be subdued, consistent with the current weakness in retail sales, lending on loans and overdrafts was stronger than of late, with a greater use being made of overdrafts."


© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.