UK April Mortgage Approvals Dip Again; Lowest Since Sep 2016: MNI

–May mortgage approvals 40,347 vs 40,686 April

LONDON (MNI) – Mortgage approvals dipped for the fourth consecutive month in May and continued to sit at their lowest level in eight months, British Bankers Association data showed.

The April BBA figures add to the evidence that housing market activity is cooling, with approvals a good indicator of future house purchase levels. In May there were 40,347 mortgage approvals, down from 40,686 in April and the weakest outturn since the 38,914 in September 2016.

Meanwhile, remortgaging approvals rebounded in May. Approvals rose to 24,248 having fallen to 23,384 in April, the latter the lowest outturn in little over two years.

The net change in mortgage lending in May was just stg1.767 billion, up from stg1.528 billion in April.

“This month’s figures show that in the run up to the General Election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending; with increased household costs affecting growth in deposits and saving,” Eric Leenders, BBA Managing Director for Retail Banking said.

“Businesses appear to be weighing up their options before raising finance to fund projects or developments. After a long period of subdued company borrowing, overall growth is starting to stabilise at a modest rate,” he added.

–MNI London Bureau; tel: +44 203-586-2225; email: [email protected]
–MNI London Bureau; +44 203-586-2226; email: [email protected]

MONDAY, JUNE 26, 2017 – 04:30

Source: MNI

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