2018.07.3006:32:00UTC+00UK Mortgage Approvals At 5-Month High

UK mortgage approvals increased to a five-month high in June, figures from Bank of England showed Monday.

The number of mortgage approvals rose to 65,619 in June from 64,684 in May. This was the highest level since January, when approvals totaled 67,156.

Despite an increase, demand is still weak, and further growth in lending will be constrained by high house prices and rising interest rates, Hansen Lu, an economist at Capital Economics, said. As a result, the economist doubts that the recent upward momentum in lending will be sustained.

BoE data showed that secured lending increased by GBP 3.9 billion after rising GBP 3.8 billion in May. At the same time, consumer credit grew by GBP 1.6 billion, the same as seen in May.

At the same time, loans to non-financial businesses rose GBP 1.3 billion after declining GBP 0.8 billion in May.