Tuesday, August 25, 2009

Mortgage Approvals Rise

The British Bankers's Association (BBA) has released figures that show that overall mortgage lending has declined month on month in July, in spite of the fact that there has been an increase in the number of mortgage approvals.

Mortgage approvals for house purchases in July have hit a 17-month high of 38,181, up from 35,564 in June.

BBA figures also show that net consumer borrowing fell by an annual amount of £0.2BN. However, outstanding balances rose by 8.7% (to £24.7BN) as a result of interest debt.

The sword hanging over the "economic recovery" is the level of consumer debt, not the strength or otherwise of the housing market.

The BBA may do well to remind its members that by profiteering from excess charges and extortionate rates of interest, the banks are threatening the economic recovery.

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