U.K. mortgage market on uptrend

The U.K. mortgage market has strengthened in June, as major mortgage providers approved more loans for house purchases last month, however, figure came below analysts' expectations, data by the British Bankers Association showed Tuesday. The number of mortgage approvals continued the upward trend and reached 37,278 in June, up from 36,290 approvals granted a month earlier. Analysts, however, expected a 38,300 reading. There is an ascending curve of mortgage approvals since the beginning of this year, as several credit-easing schemes, introduced by the government, have slowly begun to be beneficial and translate into the real economy. 

British Chancellor of the Exchequer George Osborne will unveil the plan of how the current administration will offer riskier mortgages to boost economic growth. Lenders will have to pay a fee for the guarantee, amount which will encourage them to participate. Since July 2012 the Bank of England has been trying to boost credit growth to support the nation's recovery via its Funding for Lending Scheme, which was designed to incentivise private banks and building societies to boost their lending to the U.K. real economy. The BoE has succeeded in decreasing bank's finance costs and reducing the cost of mortgages, however, its impact on business lending has been less visible to date.