UK mortgage approvals rose sharply in June, ahead of expectations and despite stricter lending criteria being imposed on banks.
Following four months of falls, the latest Money and Credit report from the Bank of England shows 67,196 mortgages were approved for house purchases in June, up from a revised upwards 62,007 in May and well ahead of the 62,600 expected by economists polled by Reuters.
The amount of outstanding loans grew by £2.1bn in June, compared to an increase of £2.3bn in May and expectations of a £1.9bn rise, FastFT reports.
A new Mortgage Market Review has imposed tougher affordability criteria on borrowers, while the Bank of England imposed new loan-to-income ratio limits on banks’ lending last month.
It is concerned that rising house prices will increase consumer indebtedness and hamper the economic recovery.
