Bank of England Data Reveals Modest Boost to Mortgage Approvals

The Bank of England's latest Money and Credit data reveals a modest boost to market activity in June, with mortgage approvals for house purchases increasing despite remaining below the six-month average.

However, borrowing costs continue to edge higher, with the effective interest rate on new mortgages jumping to 4.35% in May and the rate on the outstanding stock of mortgages rising to 3.96%. Mortgage rates have also risen back to their previous level amid renewed tensions in the Middle East.

Industry experts warn that borrowers may want to consider securing a mortgage product sooner rather than later, as rates could rise further in the short term.