November's gross mortgage lending was £14.4 billion ($23.2 billion), slightly down from October's £14.6 billion ($23.5 billion). However, strong equity withdrawal underpinned net lending, where a record seasonally adjusted increase of £5.9 billion ($9.5 billion) resulted, just surpassing October's £5.7 billion ($9.18 billion).
There were fewer mortgage loans approved in November (227,500) than in October (243,000) with a lower total value of £15 billion ($24.2 billion). Demand for re-mortgages held up, though house purchase and equity withdrawal loans were weaker. The average value of house purchase loans, £91,500 ($147,300) was 16% higher than a year earlier.
The net increase in structured loans and overdraft borrowing was only £300 million ($483 million), the smallest monthly increase since September 2000. A similar-sized increase in credit card borrowing £300 million ($483 million) was little more than its recent trend.
BBA executive director, William Mason, said: 'Mortgage lending has been consistently strong in the second half of 2002, with October and November data reflecting the general picture of high demand. However, looking at new loans approved in November, those for house purchase and equity withdrawal were noticeably weaker than in October, so maybe the tighter housing market and the time of year had some impact on future demand.
'Strong use of equity withdrawal in November no doubt resulted in only a very modest rise in consumer credit. Card spending was not as strong as in October and borrowing through loans and overdrafts was particularly weak, reinforcing reports of weaker retail sales in November.
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