UK Mortgage Approvals Dip Below Expectations in July

UK mortgage approvals unexpectedly fell in July, according to data released by the Bank of England. The number of mortgage approvals dropped to 56,100 in July from 58,200 in June, which was lower than the market consensus of 59,400. This figure is also below the six-month average of around 60,800.

The net borrowing of mortgage debt decreased by approximately 44% to £4.3 billion in July from £7.7 billion in June. This is also below the six-month average of £5.3 billion. The effective interest rate on newly drawn mortgages rose to 4.45% in July, up from 4.35% in June.

The Bank of England's next interest rate decision is scheduled for September 17, and it is expected that the bank rate will remain at 3.75%. This news comes as a surprise, given the market consensus of higher mortgage approvals.