Mortgage approvals rose in May

The number of loans approved for house purchase (43,414) was higher than in April and higher than the previous six-month average, according to the Bank of England (BoE).

The increase in total net lending to individuals in May (£0.6 billion) was lower than both the April increase (£1.1 billion) and the previous six-month average.

The twelve-month growth rate continued to fall, by 0.3 percentage points to 1.4%, and the three-month annualised growth rate also fell by 0.3 percentage points, to 0.6%.

Within the total, the increase in net lending secured on dwellings (£0.3 billion) was lower than both the April increase (£0.9 billion) and the previous six-month average. The twelve-month growth rate fell further, by 0.2 percentage points to 1.3%. The three-month annualised growth rate fell to 0.6%. Approvals for remortgaging (30,984) and for other purposes (27,933) were lower than in April and below the previous six-month averages.

Consumer credit increased by a net £0.3 billion, in line with the previous six-month average. Credit card lending increased by a net £0.2 billion and other loans and advances increased by a net £0.1 billion. The annual growth rate of consumer credit continued to fall, to 2.3%; the three-month annualised growth rate increased by 0.3 percentage points to 0.9%.