–BOE: UK May House Purchase Approvals 45,940 Vs 45,447 Apr
–BOE: UK May Net Mortgage Lending stg1.098bn Vs stg1.047bn Apr
–BOE: May M4 Ex-IOFCs 1.7% 4q/12m Annualised
–BOE: May M4 Ex-IOFCs 0.3% m/m; 1.0% 1q/3m Annualised
–BOE: UK May Net Consumer Credit stg173mln; Vs stg539mln Apr

London (MNI) – Mortgage approvals nudged higher in May from the
extra bank holiday impacted April, but the rise was less than analysts’
had expected.

The latest Bank of England personal lending data highlight the
softness of the mortgage market, while the BOE’s broad money figures
showed a pick-up in the growth rate.

The BOE data show mortgage approvals in May rose to 45,940 from an
upwardly revised 45,447 in April, below analysts median forecast for a
46,100 outturn. Mortgage approvals were originally reported to have
fallen to 45,166 in April from 47,145 in March.

April had an extra day’s holiday, for the Royal Wedding, which is
not accounted for in the BOE’s seasonal adjustment, as it does not
workday adjust.

Mortgage approvals are still running at little more than half their
long run average.

The series peak for mortgage approvals, hit back in December 2003,
was 133,981 and the low 26,454 hit in November 2008. The long run
average in this data series has been running close to 90,000.

Net mortgage lending rose stg1.098 billion in May, again only
marginally up from stg1.047 billion in April.

UK consumers appetite for unsecured borrowing remains weak. Net
consumer credit in May rose by just stg173 million on the month, below
analysts’ median forecast for a stg300 million outturn.

The broad money data showed growth picked up on the BOE’s favoured
measure, M4 excluding intermediate other financial corporations, which
aims to strip out economically irrelevant intra-financial sector
transactions.

M4 ex-IOFCs showed a monthly rise of 0.3% in May while on a four
quarter/12 month basis it was up 1.7% and up 1.0% on a one quarter/three
month annualised basis.

In April it fell 0.1% on the month and the 4Q/12m rate was 1.5%.

The raft of data issued by issued by the BOE Wednesday included its
“effective interest rates” release.

This showed mortgage rates nudging down, with the effective rate on
outstanding mortgages falling 1 basis point to 3.47% in May and with the
new mortgage loans rate steady at 3.85%.

The problem new borrowers face are the relatively large deposits
required and high earnings multiples rather than the interest rates
being charged.

–London newsroom: +44 207 862 7491 e-mail: drobinson@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]