Home loan lending ‘sees an improvement’

Mortgage lending from high street banks saw an improvement in February, newly-released statistics have shown.

A report from the British Bankers’ Association (BBA) has revealed that during the month, the level of home loans given out rose by £3.9 billion.

This compared to £3.4 billion in the previous month, with BBA statistics director David Dooks noting that high street lenders account for most of the new mortgages being approved in the UK.

However, he stated that the demand for home loans has been “moderated” by the influence of the recession.

And the amount of people seeking a remortgage as a form of debt management may have been impacted, as Mr Dooks revealed that activity in the sector has “slowed” recently.

He continued: “In the wider consumer market, unsecured credit is very subdued and individuals’ deposits are also weak.”

Meanwhile, a report from Legal & General has suggested that more people are currently seeking fixed-rate mortgages compared to the final quarter of 2008.

By Jamie Price