Mortgage approvals fell in April when compared with figures for the same month in 2006, it has been revealed.
Approvals fell from £4,248m in April 2006 to £3,910m in April 2007, according to the Building Societies Association data.
Likewise, there was a drop of more than £70,000 in net advances, although gross advances were up slightly to stand at the highest April figure for three years.
Adrian Coles, director-general of the BSA said the figures “suggest that the effects of the four rate rises since August 2006 are beginning to show”.
However, he added that the BSA expects lending “to remain robust throughout the remainder of the year, although another interest rate rise could dampen growth further”.
Meanwhile, Council of Mortgage Lenders director general Michael Coogan said that the lending market “is still strong”.
However, he said that the recent rate rises have prompted “the modest slowing in activity that we have been expecting over the rest of the year looks set to materialise”.
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