UK Mortgage Approvals Hit Two-and-a-Half Year Low Amid Rising Costs

The UK mortgage market has hit a two-and-a-half-year low in terms of approvals, according to the latest data from the Bank of England.

In August, there were 54,900 mortgage approvals for home buyers, down from 55,900 in July and marking the lowest level since December 2023.

This decline reflects elevated borrowing costs and living expenses that are weighing on housing demand, experts say.

Katie Clinton, head of financial services advisory at KPMG UK, noted that 'affordability pressures' were continuing to impact the market.