The number of loans approved for house purchase in the UK rose more than expected to a four-month high in June, a sign the mortgage market is adapting to tougher measures designed to reign in risky lending, official data showed on Tuesday.
The Bank of England said 67,196 mortgage loans were given the green light in June, ending a run of four months of declining approvals. Economists were expecting 63,000 approvals, according to a survey by The Wall Street Journal last week. However, the June total was lower than the average of 68,240 over the previous six months and well below the pre-crisis levels of around 100,000.
Mortgage lending rose by a net £2.1 billion in June, down from a net increase of £2.3 billion in May, the central bank said. Economists were expecting a net gain of £2.0 billion.
Overall lending to individuals, rose a net £2.5 billion, down from a net gain of £3.0 billion in the previous month, the bank said. Consumer credit rose a net £0.4 billion, down from a net gain of £0.7 billion in May and below economists' expectations of a £0.8 billion increase.
Lending to non-financial companies fell £3.4 billion in June, an indication that credit remains tight in some areas even though the economy is growing.
Britain's economy finally surpassed its pre-recession peak in the second quarter, more than six years after a global banking crisis caused a sharp downturn. Official data showed gross domestic product expanded 0.8 per cent in the second quarter, an annualised rate of 3.2 per cent.
Data shows sector adapting to measures designed to reign in risky lending.
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