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Mortgage lending shows more signs of improvement

Mortgage lending shows more signs of improvement
Date: 10/27/2009

Mortgage lending increased by £3 billion between August and September of this year, bringing figures for house purchase activity back to the levels not seen since the final quarter (Q4) of 2007.

This is according to statistics from the British Bankers Association (BBA), which noted that although the home loan market was showing encouraging signs of improvement, commercial mortgages had remained muted.

"Lending to companies continues to be affected by current trading conditions. In perhaps the hardest-hit sectors, related to commercial property and construction ... company borrowing in general remains subdued," explained David Dooks, statistics director for the BBA.

He attributed some of this restraint to a consumer appetite for saving and a desire to avoid unsecured lending.

All-property total returns in the business sector showed positive statistics in Q3 of this year - at 4.5 per cent - according to the Jones Lang LaSalle commercial property report from October 21st.

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