UK Mortgage Approvals Hit Lowest Level Since 2023
Bank of England data shows mortgage approvals for house purchases fell to 53,443 in September amid rising interest rates and inflation.
Mortgage approvals for house purchases in the United Kingdom fell to 53,443 in September, marking the lowest monthly level since December 2023. This decline follows a figure of approximately 54,900 in August, according to data released by the Bank of England. The slump is attributed to rising mortgage rates linked to conflict in the Middle East, with the effective interest rate on newly-drawn mortgages increasing to 4.63% in September from 4.6% in August.
While house purchase approvals dipped, remortgaging approvals rose to 42,600 from 34,000 in August. Simultaneously, net consumer credit borrowing dropped to a three-month low of £1.9 billion.
Market analysts indicate that household finances are under significant strain as inflation outstrips private sector pay growth. There are growing expectations that the Bank of England may implement a base rate hike during its November meeting, further deterring new borrowers from entering the market.
