Net lending to UK business -£3.4bln in May, June mortgage approvals 51,100

The flow of net lending to UK businesses fell for a second consecutive month in May, but major lenders approved more mortgages in June than the previous month, according to the Bank of England.

The BOE’s monthly Trends in Lending report showed net lending to UK businesses fell by £3.4 bln in May after a £6 bln fall in April. That pushed the annual rate of growth down to 0.1% in May from 1.1% in April.

Meanwhile lending panel data, which draws on information from UK’s top 6 banking groups, showed mortgage approvals for house purchase rose to 51,100 in June from 45,000 in May.

Gross mortgage lending picked up to £9.2 bln in June from £8.6 bln in May.

The Bank says some major lenders expected to make credit more available over next 3 months.