Net mortgage lending by banks in the UK is on the increase, new research has found.
Carried out by the British Bankers Association (BBA), the study revealed annual growth of 1.3 per cent for such deals – markedly more than the 0.8 per cent recorded for yearly progression across the whole lending market in 2011.
David Dooks, statistics director at BBA – which speaks on behalf of more than 200 member banks from 60 countries around the world – noted the first month of this year saw a climb in the number of mortgages for house purchase being approved by high street banks.
The industry figure observed this movement has occurred despite household confidence remaining low, but explained many individuals may be looking to snap up property prior to the ending of the stamp duty holiday in March.
“Demand for unsecured personal borrowing remains low as consumers continue to repay debt,” he added.
Mr Dooks went on to point out that demand for business borrowing is being suppressed as a result of challenging trading and market conditions.
