Mortgage Approvals Slump to Series Low -....>

UK DATA: Mortgage Approvals Slump to Series Low

- APR Net Consumer Credit -GBP7.399bn vs MAR GBP3.803bn

- APR Mortgage Approvals 15,848 vs MAR 56,136

- APR Net Secured Lending GBP0.292bn vs MAR GBP4.780bn

- APR M4 +1.5% m/m, +9.5% y/y vs MAR +3.2% m/m, +10.9% y/y

- APR M4 ex-IOFCs +1.6% m/m, +9.0% y/y vs MAR +3.0% m/m, +7.5% y/y

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Net consumer credit recorded a new record low in Apr, as households repaid

GDP7.4bn of consumer credit. As a result, the annual growth rate slipped below

zero to -0.4% in April the lowest level since Aug 2012. Covid-19 also impacted

the housing market and led to a sharp drop in mortgage approvals, falling to

15,848 -- 80% below Feb's level. This marks the lowest reading since the series

began in 1993. Moreover, the cost of credit fell in Apr with effective rates on

overdrafts down 15pp as lenders removed overdraft fees. The effective interest

rate on other loans for new businesses dropped to 5.44%, while the effective

interest rate on secured loans ticked down to 1.75%.