Mortgage lending and approvals low in November

Published: December 27, 2007

The rate of increase of mortgage lending fell in November, while the number of mortgage approvals also fell, according to new figures published today (December 27th).

Statistics published by the British Bankers Association (BBA) indicated mortgage lending grew by £4.3 billion last month, compared to £4.8 billion in October.

Over the same period gross mortgage lending fell from £18.5 billion to £16.9 billion, while the value of mortgage loans approved totalled £7 billion, a 41.3 per cent drop compared to a year earlier.

Commenting on the figures, David Dooks, BBA statistics director, said: "Mortgage activity is notably lower than this time last year and, as we expected, lending has begun to slow down."

"Judging by the significantly lower number of mortgage approvals in October and November - partly resulting from lower demand, partly from tighter supply - the market is likely to continue slowing in the coming months."

Figures published last week by the Council of Mortgage Lenders also indicated a fall in gross mortgage lending last month, from £33.5 billion in October to £30.7 billion last month.