U.K. mortgage approvals climbed less than expected

The number of mortgage approval in the U.K. reached the highest level in three months in April, though cautious consumers continued to reluctantly increase spending, and put all the money into their savings rather than take on new borrowing. Data from the British Bankers' Association showed approvals registered a 0.9% gain on an annual basis in April to 32,153, the highest level seen since January. In the meantime, analysts expected a much bigger gain, saying the figure should reach 32,700. However, the value of approvals dropped 1.1% over the same period to £5 billion, taking the average loan value to £155,900, down from £159,400 a year earlier. 

There are signs that the Funding for Lending Scheme is boosting investors' confidence, as the property market is improving constantly. However, consumer confidence remains subdued, despite banks' efforts including more competitive rates and products. Earlier this month the Council of Mortgage Lenders said that April was one of their strongest months since the financial downturn, with lending up by one fifth year-on-year. Meanwhile, firms are continuing to hold back until they see certain trading conditions and prospects for investment.