Mortgage approvals climb to a nine-month high: report

THE number of mortgages approved for home buyers jumped to a nine-month high in October, Bank of England figures show.

Meanwhile, households’ borrowing using methods such as credit cards, overdrafts and personal loans saw a further slowdown — with the weakest annual growth in more than three years.

The Bank’s Money and Credit report said the number of mortgage approvals ticked up to 67,086 in October — marking the highest monthly total since January.

The number of approvals for re-mortgaging was unchanged during the month, the report said.

The bank also said consumer credit — which includes borrowing using credit cards, personal loans and overdrafts — increased by 7.5% annually in October, slowing from 7.9% in September.

It was the lowest rate since May 2015 and well below a peak of 10.9% in November 2016.

Howard Archer, chief economic adviser at EY ITEM Club, said: “October’s rise to 67,086 does not materially change our perception that the housing market is still finding it tough in the face of still limited consumer purchasing power, fragile consumer confidence and wariness over higher interest rates.

“Although there are varying performances across regions with the overall national picture dragged down by the poor performance in London and parts of the south-east.”

Adviser: Howard Archer