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Mortgage approvals hit year low | |
(20 minutes later) | |
The number of new mortgage approvals in the UK fell to a 12-month low in April, Bank of England figures show. | |
Mortgage approvals totalled 107,000 in April, down from 111,000 in March and the third monthly decline in a row. | |
In a further indication of weakening buyer demand mortgage lending rose by £8.9bn, much less than expected and the weakest rise since September | |
Consumer debt rose by only £498m - half what was expected and the smallest increase since March 1997. | |
Rate pressure | |
Historically low interest rates in the past few years have encouraged Britons to take on a mountain of debt - now reaching £1.5 trillion. | Historically low interest rates in the past few years have encouraged Britons to take on a mountain of debt - now reaching £1.5 trillion. |
However, interest rates have risen four times since the beginning of August last year which has begun to put pressure on some households' finances. | |
Interest rates rose to 5.5% last month and it is widely thought a further rate increase is on the cards before August. | |
These rate rises are expected to eventually take some of the steam out of the surging housing market and stabilise soaring property prices. | |
But with double-digit price growth reported by Nationwide for May, analysts remain tentative on calling when a slowdown may occur. |