Gross mortgage lending 'falls in May'

Gross mortgage lending in the UK fell by £0.8 billion in May when compared to figures for the previous month, according to research.

The figures from the British Bankers Association (BBA) found that the total amount of lending stood at £16.2 billion, while the number of mortgage loans approved fell by £2 billion.

It was also revealed that the total amount of house purchase loans approved stood at £4.3 billion.

David Dooks, statistics director of the BBA, said that tighter lending criteria and economic pressure had led to the fall in mortgage activity.

"Only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders," he added.

The findings from the BBA echoed recent figures published by another major financial organiation.

According to the Council of Mortgage Lenders, gross lending fell by two per cent on figures for April, while the body also claimed that activity was strongly focused on the remortgage market.

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