Mortgage lending strengthened slightly in December

Mortgage lending strengthened slightly in December, with gross lending inflated by some borrowers pushing through purchases ahead of the end of stamp duty relief, according to the British Bankers’ Association (BBA).

Consumer credit was weak, in line with weak retail sales volumes, but savings recovered from a weak November figure, to an above-trend rise.

BBA statistics director, David Dooks, said of the latest data: "The high street banks continued to lend substantial amounts in the weaker mortgage market of 2009 approving more than 440,000 loans for house purchase. Their share of gross lending went up from a historical level of about two-thirds to three-quarters, due to specialist lenders largely withdrawing from the market and building society finance contracting.

"Households' unsecured borrowing contracted throughout the year, particularly on personal loans. After paying down debt, people sought to build up their savings."