Mortgage lending up in January

The latest British Bankers' Association (BBA) figures show that mortgage lending increased in January.

According to the organisation, gross lending hit £18 billion in the month, up on the £15.5 billion which was lent in December.

The figure is also above the six-month average of £17.8 billion and the BBA is pleased with the impressive data.

David Dooks, director statistics at the BBA, pointed out that remortgage deals had a large part to play in the positive lending figures.

"Higher gross mortgage lending in January largely reflected very strong remortgaging activity, as borrowers sought out the best deals available," he explained.

"Although house prices and new loans for house purchase, appear to be subdued as the housing market slows, the strength of remortgaging would suggest competition for mortgage business and switching remains high," continued Mr Dooks.

January's lending figures were also boosted by a cut to the base rate of interest in December.

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