Mortgage lending by Britain's biggest banks was flat last month, figures showed today, as demand for borrowing remained subdued amid a sluggish economy.
Gross mortgage lending remained at £7.6 billion sterling last month, equal to the previous month's lending, according to the British Bankers' Association (BBA), after an 11% plunge between May and June.
The number of mortgage approvals was up 4% month-on-month at 74,950, while remortgages increased 7% to 26,043.
'Demand for borrowing from both households and companies continues to be weak, reflecting slow growth in the economy,' the BBA said.
Net mortgage lending - gross lending minus repayments - was up in the period by 1.7% at £900m, while unsecured credit, such as loans and credit cards, contracted by 1.1% to £100m.
UK retail sales continue to grow slowly - edging ahead 0.2% in July - so consequent demand from consumers for unsecured borrowing remains weak, the BBA said.
