UK mortgage approvals grow, consumer credit cools down

Mortgage approvals in Britain surged to their highest level in six months in February of this year, gaining value a third consecutive month in a row. The Bank of England's data is therefore suggesting that property market in the country is finally starting to regain bullish momentum, after some period of weakness. Approvals for new housing credits climbed to 61,760 last month, up from 60,707 in the preceding month. The result exceeded analysts' expectations for a rise up to 61,500. Some negative effect on a number of new mortgage approvals came from new government rules earlier last year. At the moment, it is required for banks for more detailed and deeper checks on whether potential borrowers are able to afford buying a new home. On the contrary to that, UK government launched a broader support programme for first-time home buyers, intended to support new families and hold positive momentum at the property market of the country. Now, the state will contribute as much as 25% to the first deposit payment for purchasing new property. 

In the meantime, growth in consumer credit lending in Britain cooled down slightly in February. In total, the indicator advanced by 740 million pounds, less than 900 million pounds estimated by economists. Nevertheless, the pace of expansion remains optimistic, with consumer credit growing at an annual pace of 6.6%.