Mortgage approvals fall - BSA

Approvals were down to £3,910 million in April 2007, from £4,248 million in April 2006.

Other figures showed:

• Building society gross advances amounted to £3,772 million in April 2007, compared to £3,512 million in April 2006.
• Net advances were £1,031 million in April 2007, versus £1,106 million in April 2006.
• Building societies had net receipts of £1,351 million in April 2007 compared to net receipts of £1,330 million in April 2006.

Commenting on the mortgage market, Adrian Coles, director-general of the BSA, said: "Gross advances were the highest April figure for three years. However, net advances were down slightly on the same month last year. Approvals (loans agreed but not yet made) fell by 8% compared to April 2006. This is the first year on year fall since July 2005 - the month preceding the last cut in interest rates.”

“The lending figures suggest that the effects of the four rate rises since August 2006 are beginning to show. However, with the reasonably strong economic outlook, we expect lending to remain robust throughout the remainder of the year, although another interest rate rise could dampen growth further.”