UK lenders report surprise rise in mortgages in May, consumer lending cools

The number of mortgages approved by British lenders for house purchases unexpectedly jumped in May, according to Bank of England data that suggested the housing market recovered quickly from the end of a tax break for homebuyers in April.

Mortgage approvals rose to 63,032 in May from 60,656 the month before, and confounding the median forecast in a Reuters poll of economists for a fall to 59,750.

“The gradual easing of interest rates could be helping to boost confidence and demand amongst mortgage borrowers,” Karim Haji...