November saw a £2.9 billion increase in net mortgage lending, new figures have revealed.
The data, compiled by the British Bankers’ Association (BBA), indicated lower lending levels than for the previous month – where lending rose by £3.3 billion – and a fall compared to the six-month average of £3.5 billion.
David Dooks, statistics director for the BBA, explained that high-street banks are providing two-thirds of the homeowner loans currently on the market.
“The 1.5 per cent November reduction in [the] Bank Rate caused lenders to re-assess product ranges and borrowers to re-consider future borrowing costs, so consequently there was another drop in market activity,” he remarked, adding that the public’s concern regarding their personal finances is also limiting activity in the housing sector.
Homeowners looking to switch their mortgage as part of a debt management plan may be attracted to new offerings from NatWest and the Royal Bank of Scotland, which carry rate reductions of up to 0.4 per cent.
By Tom Musk