Banks increase mortgage lending

Mortgage lending within the private banking sector witnessed a year-on-year increase in July, new figures show.

According to data from the British Banking Association (BBA), annual growth of the banks' net mortgage lending was 1.7 per cent during the month - higher than the 0.7 per cent figure for the mortgage market as a whole in June.

The figures also show that in the first seven months of 2011, deposits and savings increased by £8.6 billion compared to £16.3 billion in the same period in 2010.

Meanwhile, unsecured credit contracted by 1.1 per cent over the past year, while personal deposits increased by 3.8 per cent.

David Brooks, statistics director at the BBA, said high street banks provided almost three-quarters of all new mortgage lending over the past two years when the mortgage market was more subdued.

"Overall companies' appetite for finance remains low, reflecting business decisions in difficult trading conditions - new finance made available to one company is simply being offset by debt repayment from another," he added.

According to London Central Portfolio, individuals with private wealth are increasingly investing in real estate in sough-after areas in the capital.

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