Mortgage lending 'up in May'

Mortgage lending, including funds lent for buy-to-let mortgages, increased last month, according to new figures.

Data from the British Bankers' Association (BBA) indicates that gross mortgage lending was worth £19.7 billion in May, which represents an eight per cent increase on the same month in 2006.

There were 204,800 home loans, including buy-to-let mortgages, approved during this period, the report states.

It also reveals that the average loan approved for house purchase rose 13 per cent from May of last year to reach £157,000.

David Dooks, BBA director of statistics, commented on what the findings represent for the market for buy-to-let mortgages and other home loans.

"Contrary to the recent stable trend, the banks' gross and net mortgage lending strengthened in May, reflecting an improved competitive position, rather than a general rise in mortgage demand across the market," he remarked.

"And, because of strong approvals in May, the banks' higher market share is likely to continue over the next couple of months."

In related news, MoneyExtra recently suggested that consumers could make significant savings by choosing the right mortgage deal.

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