High street banks increasing mortgage lending

High street banks are becoming more willing to provide mortgage funding, new figures have revealed.

Statistics from the British Bankers’ Association (BBA) showed that lending for homeowner loans strengthened slightly in December, with a total of 45,897 loans being approved.

This, the BBA said, was double the amount recorded a year previously and the highest monthly figure since September 2007.

Gross lending was increased as some borrowers looked to finalise purchases ahead of the stamp duty reduction ending.

Statistics director at the BBA David Dooks said that high street banks ’continued to lend substantial amounts in the weaker mortgage market of 2009’, adding that ’more than 440,000 loans for house purchase’ were approved over the course of the year.

Earlier this week, the Financial Services Authority revealed that it is stepping up its regulation of the mortgage market in order to cut fraud and help those who are in arrears.

Among the measures it outlined was ensuring all mortgage firms record calls relating to arrears and keep the copies for three years.ADNFCR-2318-ID-19580888-ADNFCR