This was the strongest total since November and reflects the high approval volumes seen in March. After seasonal adjustment, there was a record rise in net lending of £6.4bn.
* By contrast, approvals in April were some 15% weaker than March, partly reflecting the fewer number of business days in the month. There were 227,700 loans approved, with a total value of £17.6bn. The proportion of loans approved for house purchase, at 38%, was the highest since July 2002, though this also reflected some reduction in the appetite for remortgaging, which at 31%, was the lowest share of approvals since August 2003. The average approval for house purchase rose again, to £112,400.
* Growth in net consumer credit was weaker than the previous month’s very strong figure, rising by £1.0bn (seasonally adjusted). Whilst the credit card element saw the strongest monthly rise yet at £0.6bn (reflecting a reduction in repayment levels), demand for personal loans and overdrafts was relatively subdued.
David Dooks, BBA director of statistics, said:
"After the high number of approvals in previous months and particularly in March, April’s stronger gross mortgage lending was no surprise. Looking ahead, there was a continued reduction in the proportion of approvals for remortgaging and, loans for house purchase and equity withdrawal were also lower than in March. However, these data are strongly related to the number of business days in a month, so it is difficult to gauge yet whether net lending, after allowing for seasonal factors, will moderate accordingly in the coming months.
April’s overall net consumer credit was weaker than in March. Subdued growth in personal loans and overdrafts contrasted with strong net credit card lending, resulting from a reduced level of repayments. However, repayment levels fluctuate from month to month, particularly around bank holiday times, so April’s data are not necessarily significant."
Mortgage Lending
* Boosted by the usual seasonal factors, April’s gross lending of £16,135mn was 17.5% higher than March’s total and compared with £13,708mn in April 2003.
* The seasonally adjusted rise in April’s net lending was £6,393mn, above the trend average of +£5,600mn over the previous six months.
* Compared to the same month a year earlier, April’s approvals of house purchase loans were 10% higher by number and 39% by value; though remortgaging loans were 26% lower by number, and 20% lower by value; and equity withdrawal loans were 10% lower by number, and 1% lower by value.
Consumer Credit
* New borrowing on credit cards totalled £7,603mn in April. This was lower than the record set in March of £8,323mn but slightly higher than the average of the previous six months. However, as repayments were also lower than of late, a seasonally adjusted increase in net lending, of £569mn resulted.
* New lending on personal loans and overdrafts, at £2,524 mn, was lower than March but well in line with the average for the previous six months. However, after seasonal adjustment, the rise in net lending was £429mn, well below the average rise of £580mn over the previous six months.
