Mortgage lending grows

The latest British Bankers' Association figures show that net underlying mortgage lending picked up again in July.
This imlplies that the housing market is still coping adequately with the five interest rate increases over the past twelve months.
However, various building societies said the Bank of England's monetary tightening campaign was beginning to reduce buyer demand.
The BBA said mortgage lending rose £5.7 billion last month, up from £5.4 billion in June and above the recent monthly average.
July's strong rise was surprising, given the expected cumulative impact of higher interest rates," said David Dooks, BBA director of statistics. "This resilience shows the popularity of home ownership and also reflects more remortgaging activity."
The Council of Mortgage Lenders (CML) also said gross lending hit a July record of £34.4 billion. "Mortgage lending remains robust despite the five interest rate rises since last August -- although we have yet to see the full impact of higher rates," the CML said in a statement.
But Building Societies Association figures showed mortgage lending growth easing with building societies accounting for just less than 20% of residential mortgages.
The BSA said seasonally-adjusted mortgage approvals (a more forward-looking indicator of housing demand), amounted to £3.6 billion in July, down from £3.9 billion in June and £4.9 billion in the same month last year.