LONDON Aug 26 British banks approved fewer home
loans last month than they did in June, as tighter rules on
mortgages lending introduced late in April took some of the heat
out of the housing market, industry data showed on Tuesday.
The British Bankers' Association said its members approved
42,792 loans for house purchases in July, down from June's
three-month high of 43,180 and below an average in the first
three months of 2014 of just under 47,000.
Mortgage approvals are still about 12 percent higher than
July last year, though the amount of net new mortgage lending in
July - some 821 million pounds ($1.36 billion) - was the lowest
Britain's Financial Conduct Authority required lenders to
introduce tighter affordability checks on mortgages in late
April, and the Bank of England imposed further restrictions on
how much most Britons can borrow in June.
"Mortgage approval processes have now settled after the
introduction of the Mortgage Market Review, to a typical level
of around 40,000 mortgages approved a month for house purchase,"
the BBA said in a statement.
The BBA data does not include mortgages approved by building
societies, a major part of the market. Bank of England data for
all British mortgage lending in July is due on Sept. 1.
($1 = 0.6033 British pounds)
(Reporting by David Milliken; Editing by Louise Ireland)