Mortgage approvals up modestly in April while consumer credit growth remains stable

The figures show the housing market is struggling to gain traction amid challenging conditions.

UK Finance reported that after falling to a 2018-low (and the second lowest level since January 2015) in March, mortgage approvals rose to 38,049 in April after falling to 37,606 the previous month and from 38,016 in February and a three-month high of 39,994 in January (when they had rebounded from a 56-month low of 36,019 in December).

However, latest month’s mortgage approvals were still relatively limited, down, as they were, 9.4 per cent year-on-year and at the fifth lowest level since January 2015.

They were also 26.0 per cent below their long-term (1997-2018) average of 51,394.

Meanwhile, UK Finance also reported consumer credit growth was sable in April at the slowest rate since the current series started in April 2017.

The figures suggest record low savings ratio and concerns over the prospect of further interest rate rises may be limiting consumers’ willingness to borrow.

Lenders have also been reining in the amount of unsecured credit available to consumers and tightening their lending standard.