Mortgage lending increased in June but approvals fell

29 July 2010

Written by Gavin Elley

Those looking for buy to let mortgage deals may be interested to know that home loan lending rose in June.

According to Bank of England statistics, total net lending to individuals grew by £0.7 billion in June, compared to an increase of £0.8 billion the previous month.

Although the yearly rate of expansion was unchanged at 0.9 per cent, the three-month annualised rate rose to 0.7 per cent from 0.5 per cent, compared with May.

However, there was a four per cent decline in the number of home loans approved within the month and a six per cent decrease over the year.

Paul Santer, economist at the Council of Mortgage Lenders, commented: "This low demand is being driven both by the lack of demand among those existing borrowers enjoying low rates and tighter criteria that may be constraining those borrowers who do wish to remortgage."

The figures are likely to remain in negative territory in the coming months as they will be compared with a particularly strong end to 2009, he added.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now