Banks approve fewer mortgages, confirms BBA
British high street banks approved fewer mortgages last month, though consumer lending via credit cards bounced back amid a bumper Easter for retailers.
Data from the British Bankers Association for April showed 40,800 mortgages were approved, in line with estimates, but this was down from 41,100 in March, 42,200 in February and 44,300 in January.
Gross mortgage borrowing totalled £13.4bn in April, up from the £13.2bn the month before but short of the £13.9bn in January. Net mortgage borrowing was 2.4% higher than a year ago.
Consumer credit growth was 6.4% in April, compared with 6.1% in the previous month, driven by stronger credit card growth though personal loans and overdrafts decreased.
Borrowing by non-financial companies decreased by £0.6bn in April, partly due to short-term borrowing within the public admin sector unwinding. The annual growth rate of 2.9% in April was lower than March but higher than in recent months.
Eric Leenders, BBA managing director for retail banking, said consumer spending picked up alongside an improvement in the weather, with increased consumer lending mirroring an uplift in retail sales volumes, particularly among food retailers over the Easter period.
"House purchase approvals were largely in line with last year’s average, though remortgaging approvals have dipped slightly in recent months despite historically low interest rates."
"Business lending in April was fairly flat possibly reflecting the current uncertain climate.”