Mortgage approvals fall more than expected, Bank of England reveals

UK mortgage approval numbers continued to fall in April, according to data from the Bank of England that also showed the lowest net consumer lending in a year.

Banks approved 64,645k mortgages for house purchases compared to just over 66,000 the month before, at level which was expected to endure due to a sharp fall in the same month last year.

Remortgage lending also fell, to 40,575 from 42,250, with cooling house prices increasingly exerting a weight on the market.

April's net consumer credit remained at around £1.5bn, though net lending secured on dwellings declined to £2.7bn, the lowest since April last year.

Net lending to individuals fell to £4.3bn from £4.7bn, when the consensus forecast had been for it to hit around the £4.5bn mark.

The Bank noted that net lending flows to private non-financial corporations also hit its lowest level in a year at £1.0bn.

On the money supply, the M4 definition that measures all the sterling in circulation, encompassing notes and coins as well as money held in bank accounts but excludes intermediate and other financial corporations, increased by 1.2% month on month in April, much more than the 0.4% expected after the 0.3% rise in March.