Bank of England Data Reveals Ongoing Affordability Pressures in Mortgage Market

The latest Bank of England Money and Credit data paints a mixed picture for the mortgage and property market, indicating ongoing affordability pressures and borrowing costs. Mortgage approvals fell in August, remaining below the six-month average, with experts attributing this to the impact of higher borrowing costs and uncertainty surrounding interest rates.

Alex Beavis from LHV Bank noted that savers should be diligent in shopping around for competitive returns on their savings, as the base rate is expected to increase in the coming months. Mark Harris from SPF Private Clients advised borrowers to lock into a product as soon as possible to protect themselves from potential rate rises.

Experts also highlighted the importance of government-backed schemes, such as the Your First Home initiative, in providing much-needed impetus for the housing market.