Mortgage lending down in January: BoE

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Total net lending to individuals rose by £2.0 billion in January, according the Bank of England. The 12-month growth rate ticked up to 0.8%. The three-month annualised growth rate was 1.3%, a 0.4 percentage point increase from a revised 0.9% for December.

The number of loan approvals for house purchase (48,198) was lower than the December figure (58,223) and below the previous six-month average (55,924) approvals for remortgaging (23,611) and for other purposes (23,035) were also lower than in December and lower than their respective six-month averages.

Net lending secured on dwellings increased by £1.5 billion, above the December increase of £1.2 billion and the previous six-month average of £1.0 billion. The 12-month growth rate ticked up to 1.0%, from 0.9% in December. The three-month annualised growth rate rose to 1.4%.

Consumer credit increased by £0.5 billion, above the previous six-month average of a net repayment of £0.2 billion, and also above December’s net increase of £0.3 billion. Credit card lending increased by £0.2 billion and other loans and advances increased by £0.3 billion. The annual growth rate of consumer credit was less negative at -0.2% the three-month annualised growth rate increased to 0.7%.

RICS chief economist Simon Rubinsohn said: “Today’s numbers from the Bank of England provide confirmation that mortgage lending activity took a tumble in January. The number of mortgages approved was the lowest since May last year. The ending of the stamp duty holiday on properties valued between £125

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