Mortgage Approvals Plummet to Lowest Level Since January 2024 Amid Rising Interest Rates

UK mortgage approvals reached their lowest level since January 2024 in July, falling to 56,053 according to Bank of England data. This decline is attributed to continued pressure from elevated borrowing costs.

The effective interest rate on newly drawn mortgages increased to 4.45% in July from 4.35% in June, making it even more expensive for borrowers to secure a mortgage.

Despite the decrease in mortgage approvals, consumer credit borrowing saw an increase of £2.0 billion in July, exceeding economists' expectations.

Nationwide's August data showed that average UK house prices rose 0.2% month-on-month and 1.6% annually to £275,465.