Gross mortgage borrowing of £110bn in 2013 was 20% higher than in 2012 and the highest annual amount since 2008. It has strengthened in recent months and December’s £11.2bn was 38% higher than in December last year.
Assistance schemes for mortgages are helping first-time buyers and housing chains generally, as housing market activity rises. 2013 saw more approvals for house purchase than in any year since 2007.
BBA statistics director, David Dooks said:
“These figures show that mortgage lending grew strongly towards the end of last year.
”New mortgage borrowing in December was 38% higher than in the same month of 2012 and the total amount of home loans approved last year was higher than in any year since 2008. “This provides further evidence of a more active housing market, helped by growing consumer confidence and Government support schemes such as Help to Buy.”
Duncan Kreeger, director of West One Loans, comments:
"More mortgages are excellent news, but it’s not enough to hail a financial recovery. Businesses lending remains a black spot on an otherwise optimistic picture – and the high street banks just aren’t keeping up. To build a sustainable recovery, the UK still needs to provide more homes and offices in the right place, and help firms make the right investments to create more jobs… and this morning’s figures are still a long way off that.
"Lending by mainstream banks for real investment in property is still going the wrong way, and fast. High street loans for vital construction and development projects fell by 10% over the course of 2013 – at a time when the potential returns from such projects have increased rapidly. When opportunities are growing, speed is of the essence, and by most measures our wounded high street banks are still hobbling."
