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Mortgage approvals fall to six-month low

Business & Economy 04 May 2017
Mortgage approvals fall to six-month low

Mortgage approvals fall to six-month low: Bank of England

The fall in home loans comes amid concerns that households are facing a squeeze amid faltering wage growth and rising inflation.

Image: House price growth has slowed

Mortgage approvals fell to a six-month low in March according to latest Bank of England figures – adding to signs of caution among home buyers as consumers face a squeeze on their finances.

The Bank said the number of approvals of mortgages for house purchases slipped to a lower than expected 66,837, the lowest level since last September.

It is the second month in a row that approvals have fallen.

Mortgage lending – a figure which lags behind approvals – rose by a lower than expected £3.1bn in March.

In year-on-year terms, the increase was the weakest since November 2015.

Last week, building society Nationwide said annual house price growth had slowed to its weakest since June 2013.

The Bank of England's latest figures also showed a slowdown in the pace of consumer borrowing.

Consumer credit in the 12 months to March grew by 10.2%, the weakest increase since July last year.

The figures come amid increasing signs that rising inflation at a time of faltering pay growth is squeezing consumer spending, weighing on economic growth.

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