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| Version 0 | Version 1 |
|---|---|
| Mortgage market remains subdued | Mortgage market remains subdued |
| (20 minutes later) | |
| The UK mortgage market remains subdued despite a slight recovery in April, the major banks say. | |
| The British Bankers' Association (BBA) figures show 38,704 new mortgages were approved for house purchases in the UK in April, up from 35,546 in March. | |
| But this is still down 39.4% compared with the same time a year ago. | But this is still down 39.4% compared with the same time a year ago. |
| The figures show a sharp rise in the number of people remortgaging, highlighting a trend of homeowners switching lenders for a better deal. | The figures show a sharp rise in the number of people remortgaging, highlighting a trend of homeowners switching lenders for a better deal. |
| Still moving | |
| "It is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt," said the BBA's statistics director David Dooks. | |
| The mainstream mortgage market has not ground to a halt David Dooks, BBA | |
| The figures only cover the major banks, who have been able to ride the credit squeeze and have continued to offer a wider range of mortgage deals than smaller lenders. | |
| The smaller banks and building societies have been putting deals on hold or withdrawn offers as lending between financial institutions remains tight. | |
| The rise in remortgaging levels - up from 60,410 in March to 74,722 in April - could also be the effect of Northern Rock customers being encouraged to switch lenders for more competitive deals. | |
| Market share | |
| The BBA said that approvals for remortgaging were "exceptionally strong" in April and would lead to the main High Street banks increasing their share of the mortgage market. | |
| But approvals for house purchases continued to be well down on 2007. | |
| Mr Dooks said pressures on household finances, stalling house prices and tighter lending criteria were all cutting the demand of people wanting to move home. | |
| Annual growth in credit card borrowing also fell slightly in April, with repayments (£7.7bn) outstripping new spending on plastic (£7.4bn). |