Mortgage lending rises by 0.2% in 2012

Mortgage borrowing figures rose by 0.2% in the year to January 2013.

Summary:

• Mortgage lending increased by 0.2% from January 2012 to January 2013
• Gross mortgage borrowing in January 2013 totalled £7.7 billion
• The number of mortgage approvals in January were 57,057

The value of mortgages lent out in the year to January 2013 grew by 0.2%.

According to the British Bankers Association (BBA), gross mortgage borrowing in January 2013 was £7.7 billion, which is slightly higher than the average value of the six months leading to December 2012 at £7.6 billion.

Findings from the BAA revealed the average house purchase approvals dropped to £145,300, which is £11,300 lower than the median value in the six months prior to December 2012 (£156,600).

It also revealed the number of mortgage approvals in January was 57,057, which is slightly lower than they were during this earlier six-month period when they averaged 60,907.

BAA Statistics Director David Dooks said: “January’s severe weather impacted adversely on what was already a subdued picture of borrowing demand from households and businesses.”

Figures from the BAA also showed there was an increase in first-time buyers looking to enter the property market at the end of 2012, which it stated would help boost the entire sector.

Last month, HSBC reported it experienced a 24% increase in gross new mortgage lending in 2012, providing £16.4 billion worth of home loans during the 12 months. Recent figures also showed it approved four in five first-time buyer (FTB) applications, and 2012 saw HSBC lend £5 billion to FTBs, which is a rise of 32% on 2011’s numbers.

Natasha Al-Atassi

I’m a Property Investment writer for Select Property collating the latest industry news about Property Investments in Dubai, the Select Property brand and information to help investors interested in buying property abroad. I am also a freelance journalist and am often published in offline and online media, as well as being a keen wedding blogger. I hope you find my posts useful and please feel free to comment share or tweet.

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