UK mortgage approvals rise to four-month high in May

UK mortgage approvals rose to a four-month high in May, according to figures released by the Bank of England on Friday.

The number of mortgages approved increased to 64,526 last month from 62,941 in April, beating expectations for 62,200.

Meanwhile, the number of approvals for remortgaging rose by 8% to 51,000, marking the highest level since November 2017.

However, annual growth of consumer borrowing, excluding mortgages, slowed to 8.5% in May from 8.7% the month before, hitting its worst level since November 2015. The BoE said that while this growth rate remains elevated, particularly compared to 2009-12, the gradual slowing continues the downward trend in growth since late 2016.

North London estate agent and former RICS residential chairman Jeremy Leaf said: "The modest growth in mortgage lending and approvals confirms what we have been seeing on the ground and in other recent reports for some time.

"At a time of year when we might have expected considerably better figures, activity is slowing as prices reach the peak of affordability in many parts of the country, due to slow wage growth and tighter lending criteria.

"The outcome is fewer listings and a stand-off between what buyers want to pay and sellers are prepared to accept in already uncertain times."