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Bank mortgage lending surges 13%

Monday 28 July 1997 18:02 EDT
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Total mortgage lending by the UK's biggest banks rose by 13 per cent in June, confirming the picture of a buoyant housing market. The British Bankers' Association said new lending by the high street banks rose by11 per cent to pounds 905m from pounds 818m in May. Tim Sweeney, director general of the BBA, said the June rise in gross loans was "significant" and was 17 per cent above the recent average.

He said that in April and May there had been strong demand for approvals, particularly on fixed-rate terms, reflecting borrowers' uncertainty over interest rates and over possible Budget measures affecting the housing market.

"This demand may have been expected to decline in June, but in the event the approvals data for the month was almost as strong as in May. The figures continue to reflect a buoyant housing market," he said.

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