There was little increase in the number of new mortgage deals closed by bank lenders in April, as the annual ‘spring bounce’ that usually features at this time of year failed to materialise, according to the British Bankers’ Association (BBA).
The total number of mortgage deals approved in April was 35,729, up by 785 over March, but the total amount of lending involved in these mortgage deals was £8.2bn, which is lower than March and also lower than the average of £9.1bn for the previous six months.
The average value of each mortgage deal or house purchase was £146,700, which was up 11.7% on April 2009, the BBA said.
The total value of new mortgage deals in April, as reflected by these total lending figures, was at its lowest level since February 2001.
The total number of mortgage deals including remortgage deals in April was 75,429, well down on the previous six month average of over 80,000 per month, according to the BBA.
This figure included the 35,729 new mortgage deals, 21,580 remortgage deals, and 18,120 mortgage approvals for equity withdrawal and other purposes.
Demand for new personal loans also remained low and was down 18% on last April’s figures. Taking into account credit card lending figures and other data, the BBA concluded that consumers are focussed on clearing debt, rather than taking on new debt through a mortgage deal, or moving house by taking on a remortgage deal.
“Household priorities are clearly reflected in these latest data, with people paying down debt rather than building up savings, even in the main ISA season,” said David Dooks, statistics director at the British Bankers’ Association.
