Mortgage demand remained remarkably robust in July. Sure, when compared to July 2006, house purchase approvals were down 1 per cent by number but they were up 12 per cent by value; re-mortgaging approvals were up 12 per cent by number and up 26 per cent by value; approvals for equity withdrawal were down 2 per cent by number and up 10 per cent by value.

David Dooks, BBA Director of Statistics, said, “With customers seeking to replace deals or fix their mortgage costs, increased re-mortgaging activity boosted the banks’ lending in July. Lower approvals volumes simply reflected the seasonal pattern, so we expect the stable trend in the banks’ lending to continue over the next couple of months.

“Spending on credit cards was 8 per cent higher than in July last year, but because cardholders are at least matching their spending with repayments, card borrowing continued to decline.”
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