Remortgaging becoming more popular
An increase in the number of people remortgaging helped to ensure bank lending figures remained healthy during July.
Figures published by the British Bankers' Association (BBA) showed that gross mortgage lending for the month was £21.3 billion, representing a rise of 12 per cent from the same period in 2006.
The number of remortgaging approvals also increased by 12 per cent from July 2006, but the volume of mortgage approvals for house purchases and the amount of approvals for equity withdrawal both fell.
Commenting on the figures, the BBA's director of statistics David Dooks said: "With customers seeking to replace deals or fix their mortgage costs, increased remortgaging activity boosted the banks' lending in July."
He added that the reduced number of mortgage approvals was due to seasonal patterns and predicted the lending figures would remain stable over the next couple of months.
Figures recently published by the Council of Mortgage Lenders showed that July's gross mortgage lending figures were one per cent lower than June's.
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