Mortgage repayments outstrip new lending

Homeowners repaid £418m more than was advanced during the month as new lending by banks and building societies remained subdued. The results mark the first time net lending has been negative since 1993 when the BoE began collecting data in its current format. The steep fall in net lending was driven by the continuing contraction in the amount building societies are advancing. Brian Murphy, head of lending at the Mortgage Advice Bureau, says lending figures in August are likely to be even worse for seasonal reasons, but then pick up in the autumn. On the bright side, he says more...