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UK Mortgage Approvals Fall to Lowest Since End of 2023
Affordability pressures and higher borrowing costs weighed on housing demand as remortgaging approvals also slipped to 34,000, the Bank of England said.
- The Bank reported 54,900 mortgage approvals for house purchases in August, down from 55,900 in July, marking the lowest level since the end of 2023.
- Higher borrowing costs contributed to the decline as the effective interest rate on newly drawn mortgages increased to 4.6% in August, up from 4.45% in July.
- Lucian Cook, head of residential research at Savills, noted the fourth consecutive month with fewer than 60,000 approvals, compounded by limited housing wealth growth for homeowners since 2022.
- Upsizers are delaying moving plans until they gain confidence in personal finances, while remortgaging approvals dropped to 34,000 from 34,600, reflecting softened refinancing demand.
- Affordability pressures continue weighing on demand as shocks from the Iran conflict push up both inflation and mortgage rates, Katie Clinton, head of financial services advisory at KPMG, observed.
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Bank of England issues update for anyone with a mortgage as borrowing costs climb
Bank of England issues update for anyone with a mortgage as borrowing costs climb . Britain's mortgage market slowed further in August as homebuyers faced rising borrowing costs and households took on more credit card debt
·London, United Kingdom
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The demand for home purchase loans in Britain declined unexpectedly during August, with higher borrowing costs resulting from the war with Iran causing potential buyers not to enter the real estate market. The number of mortgage loans approved for the second consecutive month fell to 54,918 approvals, compared to 55,928 in July, following a downward adjustment of the figure, according to [...] the article that reduced mortgage applications in Br…
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Total News Sources15
Leaning Left2Leaning Right2Center2Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
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