UK mortgage approvals at 9-month low

[LONDON] UK mortgage approvals fell more than economists forecast in April, dropping to the lowest in nine months as banks tightened lending rules.

Approvals declined to 62,918 from 66,563, the Bank of England (BOE) said yesterday. That's the third monthly decline after they reached a six-year high in January. Today's report also showed continued weakness in business lending, which fell £2.4 billion (S$5 billion) in April.

Banks have toughened criteria in recent months and new rules came into force in April requiring borrowers to prove that they can afford repayments even when interest rates rise. Yesterday's report adds to signs of a possible easing in the housing market as BOE financial stability officials prepare to meet this month to decide if they need to take action to cool property growth.