February mortgage approvals fall from New Year high

Mortgage approvals in Britain fell for the first time since September last month, but were still close to the two-year high seen in January, according to fresh Bank of England data released on Thursday morning.

Mortgage approvals for house purchases totalled 73,871 in February, after reaching the high of 74,085 in January. It was less of a fall than predicted in a Reuters poll.

The data from the central bank also showed consumer lending growing less than anticipated in February. It still recorded the fastest annual growth since December 2005, however.

Consumer lending rose by £1.287bn in February, compared with forecasts for a £1.4bn rise. Year-on-year growth was 9.3%.

Net mortgage lending rose £3.648bn in February, according to the data, while total lending to households was up £4.935bn. That made for the fastest annual growth rate since November 2008, at 3.7%.

The figures came after the Bank of England warned banks on Tuesday to ensure credit checks on landlords remained robust, with competition in the buy-to-let market heating up. Its watchdog also said it was keeping an eye on consumer lending, which had been driven by car loans.

According to the bank, total lending growth remained in line with the economy’s cash size, meaning the overall risks remained acceptable.