More mortgages were repaid in February than they were taken out, according to data released by the British Bankers’ Association (BBA).
The body has announced the total number of mortgages granted during the month was six per cent lower than the same time a year ago.
Around 30,500 home loans were approved across the four-week period, which is the lowest figure recorded since July 2012, while the amount of money being lent to households dropped by £65 million from January this year.
Speaking to the Guardian, banks analyst at Investec Ian Gordon said the news is “absolutely dire” and explained negative net lending in February was the worst the BBA has seen since its records began in 1997.
“It is also the first time that net mortgage lending has remained negative for three consecutive months,” he added.
From the research, it seems the Bank of England’s Funding for Lending Scheme (FLS) has not impacted mortgage lending, despite the fact some individual rates have dropped.
Under the FLS, the institution is letting banks borrow money from it on the basis they will then lend it on to businesses and individuals.
