MNI: UK Mortgage Approvals Still Weak Despite May Rise

--May Mortgage Approvals 39,244 vs 38,327 April: UK Finance

By Jai Lakhani and Jamie Satchi

     LONDON (MNI) - UK house purchase mortgage approvals rose to its highest

level since the turn of the year but activity remains muted, data published by

UK Finance Tuesday showed.  

     Seasonally adjusted house purchase mortgage approvals rose for the second

consecutive month in May, rising to 39,244, up from 38,327 in April. The May

result follows back-to-back declines in February and March and was the highest

since January. 

     Despite the better figures, the data is still indicative a cooling housing

market lacking any real impetus. Approvals are historically a good indicator of

future house purchase levels. 

     On a year-on-year basis approvals were down 4.0% in May, the eighth

negative y/y fall on the bounce.    

     Meanwhile, re-mortgage approvals rose in May, up to 29,897 from 28,583 and

the highest since November 2017. 

     The net change in mortgage lending in May was the lowest since January,

standing at stg1.702 billion, down from stg1.870 billion in April.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

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