U.K. mortgage approvals increased in May despite fears of ‘Brexit’, the British Bankers’ Association reported Friday.
The number of mortgages approved for house purchases rose unexpectedly to 42,187 in May from 39,967 in the prior month. It was forecast to fall to 37,500 in May.
“Mortgage approvals have bounced back following the sharp drop in April, caused by the initial reaction to the stamp duty surcharge,” Rebecca Harding, chief economic advisor at the BBA, said. “This increase suggests that claims of a slowdown in house price inflation may be premature.”
IHS Global Insight Economist Howard Archer said housing market activity and prices now look to be at very serious risk of an extended, marked downturn following the UK’s decision to leave the UK.
Gross mortgage borrowing of GBP 12 billion in the month was 10 percent higher than in May 2015.
Consumer credit continues to show annual growth of about 6 percent reflecting uncertainty and in the case of personal loans and overdrafts favorable interest rates.
The material has been provided by InstaForex Company – www.instaforex.com