Mortgage lending hits five-and-a-half year high

Mortgage lending soared to its highest level for more than five-and-a-half years during April on the back of strong housing market activity, figures showed today.

Mortgage lending hit its highest level for more than five-and-a-half years during April on the back of strong housing market activity, figures showed today. According to the British Bankers’ Association, a total of £12.23bn was advanced during the month, the highest monthly total since August 2008.

The sum was 52 per cent higher than in April 2013 and also up on the £11.05bn lent in March. The group attributed the high figure to strong housing market activity, accelerated by the Government’s Help to Buy scheme. But the number of mortgages approved for house purchases fell for the third consecutive month in a further sign that the property market may now be slowing down.

The number of loans in the pipeline for people buying a home also dropped to the lowest level since August last year.

Despite the strong year-on-year increase, total mortgage advances still remain well below their pre-credit crunch levels, with £19.36 billion lent in April 2007.

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