UK mortgage approvals dip in November amid stagnant economy
UK mortgage approvals fell in November from a 26-month high in October, amid signs of a slowing economy.
Bank of England data, released today, showed that net mortgage approvals for house purchases decreased by 2,400 to 65,700 in November.
This contrasts to the upward trend of previous months, when mortgage approvals rose to 68,300 in October, up from 65,600 in September.
The drop in mortgage approvals comes despite lower interest rates on offer for prospective buyers.
The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages decreased to 4.5 per cent in November, the lowest since April 2023.
Read more: UK residential mortgage arrears drop but buy-to-let still under stress
Meanwhile, consumer borrowing decreased slightly to £900m, from £1bn in October.
And the annual growth rate of consumer credit slowed to 6.6 per cent from 7.3 per cent – the slowest pace since June 2022.
The latest Bank of England statistics come after it emerged that the UK economy showed no growth in the three months to September, according to revised figures from the Office for National Statistics released last week. And the Bank of England estimated last month that the UK economy was continuing to flatline in the fourth quarter.
