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20 things
The British Banking Association’s May Index
30 June 2007
Twenty things you should know about the British Banking Association’s May Index
1 The British Banking Association (BBA) May Index revealed a rise in gross mortgage lending, of 8 per cent from the May 2006 findings.
2 May’s gross mortgage lending reached a total of £19.7 billion, according to the report.
3 The BBA indicated that there were 204,800 mortgages approved, for all purposes, in May, which was 2 per cent more than in May 2006.
4 These mortgage approvals had an aggregate value of £24.2 billion.
5 The average loan approved for house purchase reached £157,100, 13 per cent higher than a year earlier.
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6 As part of the study the organisation showed that underlying net mortgage lending rose by £5.8 billion.
7 This was an upsurge on April’s increase, of £5.1billion, and the recent average of £5.4 billion.
8 The annual growth in net mortgage lending continued to remain around 14 per cent.
9 House purchase approvals were down 4 per cent on the May 2006 findings, the BBA revealed, but had increased by 9 per cent in value.
10 Remortgaging approvals were up 13 per cent by number and 25 per cent by value.
11 According to the BBA, approvals for equity withdrawal were down 3 per cent by number but 6 per cent higher by value.
12 New lending on personal loans and overdrafts in May was 9 per cent less than in May 2006 and after seasonal adjustment, loan and overdraft lending fell by £54 million net, the study showed.
13 Spending on credit cards totalled £7,418 million in May, the BBA revealed.
14 This represented a drop of 3.4 per cent from the May 2006 findings.
15 After allowing for repayments and seasonal adjustment, underlying net lending decreased by £409 million.
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16 The BBA May Index indicated that credit card borrowing fell by £0.4 billion (net) in May, while borrowings on personal loans and overdrafts also fell, by £0.1 billion.
17 David Dooks, BBA director of statistics, said: “Contrary to the recent stable trend, the banks’ gross and net mortgage lending strengthened in May, reflecting an improved competitive position, rather than a general rise in mortgage demand across the market. Because of strong approvals in May, the banks’ higher market share is likely to continue over the next couple of months.”
18 He added: “Although retail sales have grown recently, credit card borrowing continues to slow down as consumers prefer to pay up front rather than borrowing to spend.”
19 The BBA is the leading UK banking and financial services trade association and acts on behalf of its members on domestic and international issues. Its members, from 60 different countries, collectively provide the full range of banking and financial services. They operate some 130 million personal accounts, contribute £50bn to the economy, and together make up the world’s largest international banking centre.
20 The Major British Banking Groups account for two-thirds of all mortgage lending outstanding and around 65 per cent of gross lending. They also provide over half of all consumer credit outstanding and, within that, 70 per cent of all card credit. They include 12 of the 15 largest mortgage lenders in the UK: Abbey, Alliance & Leicester, Barclays and Woolwich, Bradford & Bingley, HBOS, HSBC, LloydsTSB, Northern Rock, Royal Bank of Scotland and National Westminster.
