Mortgage lending down says London Mortgage Broker, London Mortgage Advice. Tuesday, 26th May 2009

The British Bankers' Association (BBA) said today, mortgage lending from high street banks slumped to an eight-year low in April, but there were also signs of an increase in homebuying activity.Net lending, which takes into account repayments, increased by £2.7bn over the month, down from £3.4bn in March. Gross mortgage lending stood at £7.9bn in April compared with £8.7bn in March and a six-month average of £9.9bn. The figure is 52.4% lower than in the same month last year.
However, there was some evidence that activity among homebuyers had picked up as gross lending for house purchases crept up to £3.5bn against a six-month average of £2.9bn. This was up on the previous month's £3.4bn, but 29.7% lower than the amount lent in the same month last year.The number of mortgages approved for house purchases also edged upwards to 27,685, around 1,000 more than in March and well above a six-month average of 23,812. The average home loan for a purchase had a value of £129,100, 16.7% lower than last April.Borrowing on credit cards, meanwhile, increased very slightly in April with £6.1bn in new spending going on to plastic compared with a six-month average of £6bn, but down 10.8% compared with last April. However, the value of repayments matched the amount spent at £6.1bn. Lending through personal loans and overdrafts remained steady at £1.5bn, down 39.3% compared with the same month last year.
While there is evidence that people are being relatively conservative in their borrowing, figures published today by comparison site Confused.com suggested worrying levels of consumer debt. Research by the firm showed that on average for every £1 earned an individual will owe £1.02.
According to the study, the area of the UK with the biggest discrepancy between borrowing and income is Kingston upon Thames in Surrey, where debts were equivalent to 169% of annual income, followed by Watford, with 166%. People in Manchester fared much better with debts equalling 51% of income.
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Mortgage lending from high street banks slumped to an eight-year low in April, the British Bankers' Association (BBA) said today, but there were also signs of an increase in homebuying activity.
bang banks should never have been allowed to lend money as mortgages.