Mortgage lending at eight-year low

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Net lending by the major banks totalled just £2.7 billion during the month, the lowest figure since March 2001, the British Bankers' Association said.

But the number of mortgages approved for house purchase increased to the second highest figure in just over a year as buyers returned to the market.

A total of 27,685 mortgages were approved for people buying a new property during the month, 4% more than in March, and only 16% lower than a year earlier, building on evidence that house purchase activity has now passed its trough.

But the average value of these mortgages has dived from £155,100 in April last year to £129,100 last month, reflecting the steep house price falls seen during the past year.

The number of people remortgaging to a better deal fell for the fourth month in a row during April to hit a near 10-year low.

Only 25,418 remortgage loans were approved during the month, as historically low interest rates mean many homeowners are better off staying on their lender's standard variable deal when their existing mortgage comes to an end, rather than switching to a new mortgage.

There was also a further decline in mortgage approvals for equity release and buy-to-let properties.

The steep decline in remortgage activity is dragging down the total lending figures, with the value of all mortgages approved falling slightly to £7.2 billion during the month, despite the value of approvals for house purchase rising.

David Dooks, British Bankers' Association (BBA) director of statistics, said: "The house purchase part of the mortgage market appears to have stabilised, with slightly more approvals coming through, although April's weak net mortgage lending reflects the lower number of approvals in previous months. Households' uncertain financial circumstances not surprisingly continue to dictate consumer behaviour, both in the housing market and in generating only low demand for new personal loans."