Mortgage approvals hit 17-month high

BBA statistics director, David Dooks, said: "The numbers of mortgages approved for house purchase each month by the high street banks have continued to recover from last November’s low point, but new lending is largely being offset by repayments, so that net rises remain relatively weak.

"Unsecured borrowing is subdued, with households focused on managing their personal finances and building up deposits.

"Lending to non-financial companies has contracted over the last year, as would be expected given both the recession and large corporates using the capital markets to raise funds, but amounts outstanding are only 3% lower than a year ago."

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