LONDON (AFX) - Gross mortgage lending by major UK banks fell to 5.993 bln stg in February from 6.136 bln the previous month, according to the latest monthly data released by the British Bankers' Association.
The BBA went on to report new mortgage approvals strengthened on the month to 7.517 bln in February, with the total value rising by 23 pct.
The average mortgage loan approval value was 74,400 stg, down from 71,300 stg the previous month.
Seasonally-adjusted net mortgage lending fell by 6 pct to 1.945 bln stg from January's 2.065 bln stg rise.
The BBA said there were 40,491 remortgages approved during the month at a value of 2.564 bln stg.
Approvals of loans secured on dwellings for purposes other than house purchase or remortgaging - such as home improvement and equity release loans - totalled 717 mln stg, down from January's 638 mln stg. The BBA reported that gross lending on personal loans totalled 2.599 bln stg in February, down from 2.728 bln in January.
Gross lending on credit cards totalled 4.689 bln stg in February, down 12 pct from January's 5.349 bln stg. Seasonally adjusted net lending rose 222 mln compared with January's 100 mln rise.
Tim Sweeney, BBA director general, said that whilst mortgage lending moderated in February, much stronger data for loan approvals suggested that there was every likelihood of the mortgage market strengthening in the coming months.
"Re-mortgaging remains strong and stable, but loan demand for house purchase will see its usual seasonal upturn in the Spring,boosting the overall lending figures. With expectations of constant or even falling interest rates, new borrowers are being presented with even-more attractive products and as variable rate products account for the bulk of mortgage loans, this could well be the area of the market where we shall see growth."