"People are acting conservatively in this weak economic environment..."
- David Dooks, BBA statistics director
The number of mortgages approved by the British Banker's Association fell by 13% from the previous year in August, numbering 30,533 with total value of £4.8 billion. Although net mortgage lending shrank by 284 million pounds last month than a year ago, data showed some improvement from 29,000 approvals in July worth £4.5 billion.
"People are acting conservatively in this weak economic environment, maintaining debt repayments and building up deposits, particularly in ISAs. Household mortgage approvals are improving slightly but unsecured borrowing continues to be subdued," said David Dooks, BBA statistics director.
"Weak trading conditions persist so companies may well remain reluctant to borrow for investment or expansion in these conditions."
The FTSE 100 Index edged higher 0.36 per cent to 5,859.71. However, the broader FTSE All-Share Index rose 0.34 per cent to 3,057.52.
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