Mortgage lending data reveals sluggish housing market Mortgage lending totalled £7.3bn in September, down 6pc on the same month last year, according to the BBA's high street banking report. Numbers of remortgaging approvals were 15pc lower than in September 2011 and approvals for other secured lending were 23pc lower. Saving levels in the UK also increased over the year to date, with cash ISAs being particularly popular as households look to accounts paying better rates of interest. Personal deposits have risen 5.7pc over the year to September. BBA statistics director David Dooks said: "The continuing economic uncertainties both in the UK and in the euro area are having a dampening effect on activity within firms and households. Households are reducing borrowing requirements and have no appetite to take on more/new debt. Where they can individuals are putting money aside for household expenditure. Firms are holding back on borrowing for investment until trade prospects improve. Matthew Pointon, property economist at Capital Economics, said: "There was a further slight uptick in mortgage approvals in September, but it would be premature to view this as the start of a sustained recovery in the housing market. The improvement was modest, and banks show no desire to materially increase their mortgage lending.