Mortgage approvals show June decline

Mortgage approvals fell below the six month average in June, according to new data.

The Bank of England has released its latest figures on lending to individuals.

Total net lending rose to £0.6 billion last month, but the twelve-month growth rate remained at 0.8 per cent.

The number of loan approvals for house purchase fell from 49,461 in May to around 47,643 in June.

This is below the previous six-month average of 50,036 loan approvals.

Overall, loan approvals are six per cent down on a year ago.

Commenting on the data, the Council of Mortgage Lenders' economist Paul Santer said: "This is the first time the annual rate has turned negative since April last year, but it is likely to remain so in future months as comparison is made with a rather stronger market towards the end of last year."

He added that the "exceptionally subdued" level of remortgaging activity was down to historically low interest rates and tougher lending conditions.

Posted by Luella Ravelin

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