2014.04.2506:31:00UTC+00UK BBA Mortgage Approvals At 4-month Low

Mortgage approvals for house purchase in the U.K. declined for a second straight month in March to its lowest level in four months, defying expectations for an increase, figures from the British Bankers' Association showed Friday.

The number of home loan approvals fell to a seasonally adjusted 45,933 from 47,196 in February, revised from 47,550. Economists had forecast 48,950 approvals for March.

The latest figure is the lowest since November, when they were 45,033. In January, approvals totaled 48,940, the highest since September 2007.

"February's softer performance had been largely attributed to activity being held back by the very wet weather but with mortgage approvals easing back further in March it may be that a little bit of froth has come off the housing market," IHS Global Insight economist Howard Archer said.

"Most survey evidence is still pointing to elevated buyer interest and robust underlying activity so it remains to be seen if the housing market really is coming off its recent highs," he said.

Including re-mortgages and other secured borrowing, the total number of mortgages dropped to 76,069 in March from 78,030 in February.

Rising consumer confidence and strengthening economic recovery boosted loan demand, which led to an increase in personal loans and overdrafts for the first time since January 2009. Net borrowing on personal loans and overdrafts rose an annual 0.5 percent in March.