Mort­gage ap­provals sink to three-month low as home­own­ers a wait rate rise

Belfast Telegraph - Business Telegraph - - Business Telegraph - BY BEN WOODS

THE num­ber of mort­gage ap­provals be­ing made to home buy­ers dropped to a three-month low in Septem­ber, ac­cord­ing to Bank of Eng­land fig­ures.

Some 66,232 loans for house pur­chases were given the green light in Septem­ber, mark­ing the low­est monthly fig­ure since June 2017.

It is the sec­ond month in a row that mort­gage ap­provals have fallen and comes af­ter a six-month high of 69,360 in July. How­ever, the Bank’s Money and Credit re­port showed re-mort­gage loans picked up in Septem­ber to 47,598, ris­ing from 46,270 the month be­fore.

Home­own­ers are brac­ing for a po­ten­tial in­ter­est rate hike on Thurs­day, with econ­o­mists widely pre­dict­ing that the Bank’s Mon­e­tary Pol­icy Com­mit­tee (MPC) will hike the cost of bor­row­ing from record lows of 0.25%.

The re­port also showed that an­nual growth in con­sumer credit eased to 9.9% in Septem­ber, match­ing lev­els seen in July.

The amount bor­rowed for the month reached £1.6bn, down from £1.8bn in Au­gust.

Howard Archer, EY ITEM Club’s chief eco­nomic ad­viser, said: “Septem­ber’s sec­ond suc­ces­sive dip in mort­gage ap­provals from a six-month high in July re­in­forces our be­lief that there is un­likely to be a sus­tained, sig­nif­i­cant up­turn in hous­ing mar­ket ac­tiv­ity any time soon. Hous­ing mar­ket ac­tiv­ity re­mains un­der pres­sure from the se­ri­ous squeeze on con­sumers, frag­ile con­fi­dence and ap­pre­cia­ble cau­tion over en­gag­ing in ma­jor trans­ac­tions.

“A likely Bank of Eng­land in­ter­est rate hike on Thurs­day may very well also weigh down on hous­ing mar­ket ac­tiv­ity.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.