Mortgage lending growth in the UK slowed last month, according to the Bank of England, adding to the evidence that Britain's housing boom is cooling off. Net lending secured on dwellings totalled STG7.2bn in February, down from STG7.64bn the previous month, the central bank said this morning. Net new consumer credit - which includes personal loans and borrowings on credit cards - rose to STG1.5bn in February from STG1.32bn, a larger than expected increase. Credit card credit rose STG515m after a STG649m rise the previous month.
"In the United Kingdom, evidence was accumulating that household consumption was beginning to slow and the housing market continuing to cool," the bank said in the minutes of its policy meeting earlier this month, when it left rates steady at 3.75pc. Total net lending, which includes both lending secured on dwellings and consumer credit, amounted to STG8.7bn, down from STG9bn in January. There have now been two straight months of falls since December's STG9.2bn increase. The Bank of England also reported that the value of approvals of new mortgage loans rose to STG21bn from STG20.5bn in January, with the number of approvals rising to 109,000 from 108,000. //www.fxcentre.com