The number of mortgages approved for home purchase in Britain fell four per cent in May from a year earlier, a survey showed, providing further evidence the property market may be losing steam.
The British Bankers' Association said today that mortgage approvals - loans agreed but not yet made - fell to 77,443 last month from 80,298 in May last year.
The value of mortgages for home purchases rose by nine percent on the year, however, reflecting the continued rise in house prices. The BBA left its earlier estimate for the rise in underlying net mortgage lending in May unrevised at 5.8 billion pounds, the largest rise in six months.
"Contrary to the recent stable trend, the banks' gross and net mortgage lending strengthened in May, reflecting an improved competitive position, rather than a general rise in mortgage demand across the market," said David Dooks, director of statistics at the BBA.