UK Mortgage Approvals Fall Amid Higher Borrowing Costs

The latest data from the Bank of England shows that mortgage approvals in the UK fell to 56,100 in July, down from 58,215 in June. This figure is below the six-month average of 60,800, suggesting that higher borrowing costs are weighing on housing demand.

Meanwhile, mortgage borrowing by individuals also fell sharply to £4.3 billion, from £7.7 billion in June. This is below the previous six-month average of £5.3 billion, indicating a decline in consumer spending power.

Damien Burke, Head of Regulatory Practice at Broadstone, warned that the mortgage market has lost momentum and that affordability pressures and wider economic uncertainty are making prospective buyers cautious.