UK Mortgage Approvals Slump to Lowest Level Since December 2023
The number of mortgage approvals in the UK has hit its lowest level since December 2023, according to the latest data from the Bank of England. In August, a total of 54,900 mortgages were approved for house purchases, down from 55,900 in July.
This marks a decline below the average of about 60,100 over the previous six months and indicates a slowdown in demand among home buyers, experts said.
The effective interest rate on newly drawn mortgages also increased to 4.6% in August, from 4.45% in July, reflecting the actual interest paid on home loans.
Katie Clinton, head of financial services advisory at KPMG UK, noted that affordability pressures are continuing to weigh on housing demand, while Lucian Cook, head of residential research at Savills, attributed the weakness in mortgage approvals to recent volatility in the market and decreased household wealth due to pressure on house prices since September 2022.