2010.08.3105:58:00UTC+00U.K. Gross Mortgage Lending Rises 11% In July: BSA

Gross mortgage lending by mutuals rose 11% month-on-month to GBP 2 billion in July, the Building Societies Association said Tuesday. That was the highest monthly figure so far this year.

Mortgage approvals made in July amounted to GBP 1.9 billion, unchanged from June. Net lending by mutuals was negative GBP 379 million compared to negative GBP 432 million in June.

Adrian Coles, director-general of the BSA, said,"Lending by mutual mortgage providers has picked up over the summer months, and the approvals figures suggest this level of lending may continue in the near future."

Nevertheless, while the outlook appears a little brighter, there remain significant challenges such as heightened uncertainty about job prospects and household incomes, potentially limiting future demand. This could make it difficult to sustain the growth in activity, Coles said.

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