Mortgage approvals rise in May

 
Suzie Neuwirth

MORTGAGE approvals rose more than expected in May, signalling a recovery for the UK economy.

Data from the British Bankers’ Association said that personal deposits have risen by 5.5 per cent over the year to May and gross mortgage borrowing hit £8.6bn in May, 7.5 per cent higher than the recent monthly average.

The number of mortgages approved by the British Bankers’ Association in the three months to May rose from 32,952 to 36,102. The consensus was for a rise to 33,100.

“New mortgage borrowing from the high street banks strengthened in May and approvals for both house purchase and remortgaging continued to rise,” said BBA statistics director, David Dooks.

“Unsecured consumer borrowing also saw a small net rise overall, in line with improved retail sales volumes.

“SMEs use of their own high levels of cash resources and large companies’ use of alternative finance, means demand for bank borrowing is subdued and a reflection of challenging trading conditions.”