UK Mortgage Lending Sees Biggest Slump in 18 Months

British mortgage approvals and lending slumped in June, echoing broader economic weakness that month due to extra public holidays and very wet weather, Bank of England data showed on Monday.

Consumer lending, such as credit card borrowing, held up relatively well, but house purchase activity fell to its lowest in one and a half years and headline money supply figures showed their biggest annual drop since records began in 1983.

Last week, official data showed that economic output in the second quarter of 2012 suffered its biggest fall since early 2009, as one-off effects compounded the misery faced by an economy already mired in recession and hurt by the euro zone debt crisis and public spending cuts.

The Bank of England said mortgage approvals fell to 44,192 in June, down from 50,544 in May, the lowest reading since December 2010 and well below analysts’ forecast of a reading of 49,000.

via CNBC

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