UK mortgage approvals tick lower in June

UK mortgage approvals fell in June, albeit less than expected, according to data released by UK Finance.

House purchase approvals declined to 40,200 from 40,287 the month before, coming in slightly ahead of expectations for a bigger drop to 39,900 and little changed from June last year.

Meanwhile, remortgaging approvals of 25,361 were down on the monthly average of 26,127 over the previous six months, but similar to June 2016.

Annual growth in credit card borrowing remained at 5.5%, while personal loans and overdrafts saw a further contraction, from 0.8% to 1.3%. Annual growth in consumer credit overall has dropped from 2.1% to 1.9%.

Eric Leenders, head of Personal at UK Finance, said: "June saw consumer borrowing from high street banks, which accounts for 45% of the overall credit market, maintain its slower pace as rising inflation put pressure on household incomes.

"Housing activity remained relatively stable with over 74,000 mortgages approved last month while businesses continue to build their reserves, borrowing less and increasing their deposits at an annual rate of 6.1%.”