Lending rises £1.2bn

The twelve-month growth rate remained unchanged at 0.8%.

Within total lending, lending secured on dwellings rose £0.7 billion, compared to the previous six-month average increase of £0.8 billion. The three-month annualised growth rate decreased 0.3 percentage points to 0.7% and the twelve-month growth rate remained unchanged at 0.7%.

Gross lending secured on dwellings was £11.2 billion in April, similar to the previous six-month average of £11.3 billion. Repayments in April were £11.2 billion, slightly higher than the previous six-month average of £11.0 billion.

The number of loan approvals for house purchase (45,166) fell in April and was lower than the previous six-month average (46,179). Approvals for remortgaging (28,091) and other purposes (19,970) also fell in April and were lower than the previous six-month averages (32,534 and 21,138 respectively).

Consumer credit rose by £0.5 billion in April compared to the previous six-month average increase of £0.4 billion.

The twelve-month growth rate increased 0.3 percentage points to 1.5%, the highest figure since June 2009 (1.9%). Within consumer credit, credit card lending rose £0.3 billion while other loans and advances rose £0.2 billion in April.

Brian Murphy, head of lending at independent mortgage brokers, Mortgage Advice Bureau, said:

"The raft of Bank Holidays and the Royal Wedding inevitably skewed the April data, so an overall drop in the number of loan approvals and remortgages comes as no surprise. The nation went on holiday.
 
"During May, activity bounced back and returned to the steady growth trajectory of February and March, albeit one that is naturally still at historically low levels.
 
"The ongoing drop in the number of remortgages reflects how people increasingly believe that an interest rate rise is unlikely in the short-term and that, if one does come, rates overall will remain very low for the foreseeable future."