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Mortgage lending levels fall

High levels of mortgage lending witnessed at the start of the year have fallen now that the stamp duty concession has ended, according to the Bank of England.

In March, 49,860 mortgages were approved for house purchases, down from 57,954 in January.

High levels witnessed earlier in the year have been attributed to an increase in demand from first time buyers before the stamp duty levy was reintroduced.

The stamp duty exemption for first time buyers who brought homes worth between £125,000 and £250,000 came to an end after two years on 24 March. The project had been deemed ineffective in increasing first-time buyer numbers.

However, figures from the Bank of England indicate that there has been a slight rise in the amount of unsecured lending given to consumers, to £419 million in March from £285 million in February. This includes lending on credit cards, loans and overdrafts.

This was posted in Bdaily's Members' News section by Ruth Mitchell .