Mortgage lending slows: UK

‘Mortgage lending by banks slowed slightly in March but there were signs the market for house purchase loans is stabilising somewhat, the British Bankers’ Association said on Wednesday.

Underlying mortgage lending rose 4.5 billion pounds in March, less than February’s 4.8 billion pounds and below the average increase over the last six months of 4.6 billion pounds, the BBA said.

Economists said the numbers suggested that after slowing in the second half of last year, British housing market activity could be steadying.

“The data suggests a modest firming in mortgage activity in March but at very subdued levels compared to a year ago,” said Philip Shaw, economist at Investec.

BBA said there were signs of underlying strength underpinning demand in the British market, where most households own their own home.’

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