UK mortgage approvals fall four per cent

The number of mortgage approvals for home purchases in Britain edged down in April on a year ago, the first annual decline in nine months, British Bankers' Association data showed yesterday. Approvals - the number of loans agreed but not yet completed - totalled 64,683 in April after 85,698 in March. That marked a four per cent fall on a year ago, the first annual drop since July 2005. The figures are not adjusted to reflect seasonal patterns in the housing market, which means they can be volatile from month to month. The Bank of England will publish more comprehensive, seasonally adjusted data on May 31. BBA director of statistics David Dooks said April's weaker outturn had been expected, given a smaller number of working days that month. Easter holidays fell in April this year but were in March in 2005.

"However, after allowing for working day effects, approvals were much in line with recent trends," he said.

The value of the average home loan increased to £140,400 in April from 134,300 in March and was up nine per cent on a year ago.

The BBA left April's rise in seasonally-adjusted net mortgage lending - first published last week - unrevised at five billion pounds.