Further strength in mortgage lending

Following last week's release of MBBG (Major British Banking Groups) net lending figures for November, further information now available on lending to individuals shows that November's gross lending hit £17.955 billion. That's 2.5% higher than October's total of £17.509 billion, and 22.9% higher than the £14.610 billion seen in November 2004.

Seasonally adjusted net mortgage lending rose by £5.081 billion, compared with £4.293 billion in October. The increase in November was also stronger than the average of +£4.432 billion in the previous six months, producing an annual growth rate just below 12%.

Compared to the same month a year earlier, November's approvals of house purchase loans were 51% higher by number and 64% higher by value; remortgaging loans were 17% higher by number and 34% higher by value; and equity withdrawal loans were 1% higher by number and flat by value.

Meanwhile, new borrowing on credit cards totalled £7.520 billion in November. This was 3% lower than the previous month and repayments were flat. After seasonal adjustment the increase in net lending of £135 million compared with a recent average increase of +£145 million.

Elsewhere, new lending on personal loans and overdrafts was slightly higher than the average for the previous six months, at £3.110 billion. But after seasonal adjustment there was a weak rise in net lending of £128 million.

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