The number of mortgages being approved in the UK has begun to fall, with a drop of 5% in April.
Some 71,238 people were approved for a mortgage in April, down from 75,853 in March. This was down significantly from a six-monthly average of almost 76,800.
The decline was ascribed to new and more rigorous regulations to qualify for a loan introduced by the Financial Conduct Authority. Applicants must answer intrusive lifestyle and income questions to see if they can cope when interest rates go up.
But despite the drop, continually rising house prices meant that total lending rose to a six-year high of £12.2bn in April, up by 52% from a year ago.
The fall in mortgage approvals may eventually have an impact on house prices.
