Mortgage lenders tightened credit in April

LONDON (Reuters) - Mortgage lenders tightened credit terms last month despite a cut in official interest rates, Bank of England data showed on Monday.

Figures from the central bank show the typical rate on a new two-year 95 percent loan-to-value fixed mortgage rose 34 basis points to 6.94 percent.

That was the highest rate since February 2000 and almost two percentage points above official rates of 5 percent.

The rate on a similar product for someone borrowing 75 percent of their property's value also rose, but by a smaller amount, to 6.08 percent. That was the highest since last November.

The figures support anecdotal evidence that lenders are withdrawing their most competitive rates and penalising riskier borrowers as the credit crunch takes its toll on both the housing market and the economy.

House prices fell at their fastest annual rate in 15 years last month, according to the Halifax, and analysts are forecasting a pick-up in home repossessions over the coming year.

The typical standard variable rate offered by banks and building societies was unchanged at 7.24 percent.

(Editing by David Christian-Edwards)