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Mortgage lending at three-month low (News (General))
by administrator 
, Wednesday, July 28, 2010, 02:38
Mortgage lending fell in June as the housing market continued to struggle to pick up momentum, according to figures from the British Bankers' Association.
The number of loans advanced last month - a total of 34,813, compared with 36,418 in May - was the lowest since February, when poor weather and the reinstatement of stamp duty combined to hit activity in the market.
Net mortgage lending, which excludes redemptions and repayments, also fell from £2.5 billion in May to £2.1 billion in June.
Although borrowing on credit cards rose, the increase was largely due to repayment of interest and charges rather than new spending.
Consumers repaid more than they borrowed for a 14th month in a row, while lending via loans and overdrafts fell by £314 million.
Unsecured lending has now contracted by 2.7% during the year to the end of June, the group said.
Savings levels picked up slightly in June, after falling sharply in May and being negative in April.
Deposits held by consumers rose by £1.65 billion during the month, up from £856 million in May, but down on the previous six-month average of £2.7 billion.
