30th August 2018

UK mortgage approvals fall

The amount of mortgage approvals for new house purchases dropped by 4.3% in July.

City economists had forecast around 40,700 mortgages to be approved whereas only 39,584 were.

This is despite a boost from existing home owners locking in cheaper interest rates before the interest rate raise in August.

Net mortgage lending was the weakest since February.

Annual consumer credit growth has also been at its weakest since December 2014, slowing to just 3.7%.

The latest news of the mortgage market comes as British households face slow wage growth and higher levels of inflation since the Brexit vote.

House-price growth across the country has been slowing in recent months, with property values in London falling for the first time since the financial crisis.

“The broader economic outlook remains mixed, with households continuing to see their incomes being squeezed by rising inflation,” UK Finance director Peter Tyler said.

 

References: Reuters
The Guardian

 

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