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UK Mortgage Approvals At 13-Month Low

UK mortgage approvals declined to a 13-month low in August, data from the Bank of England showed on Wednesday.

Mortgage approvals for house purchases fell to 74,453 in August from 75,126 in July. This was the lowest since July 2020.

However, approvals remained above pre-February 2020 levels. The expected level was 73,000.

According to BoE, individuals borrowed GBP 5.3 billion of mortgage debt in August, following a net repayment of GBP 1.8 billion.

At the same time, gross lending bounced back to GBP 21.5 billion in August from GBP 16.6 billion in July.

With the current fuel crisis restraining activity (outside of spending on fuel), there is a risk that at some point the economic recovery may take a small step backwards, Paul Dales, an economist at Capital Economics, said.

“That would be food for thought for the Bank of England who appears intent on raising interest rates in the coming months,” the economist added.

Individuals borrowed GBP 0.4 billion in consumer credit in August. Within this, they borrowed an additional GBP 0.2 billion of ‘other’ forms of consumer credit and GBP 0.2 billion in credit card debt.

The material has been provided by InstaForex Company – www.instaforex.com