Proactive Investors - UK mortgage approvals have fallen to their lowest level in six months, the latest sign that the Bank of England's rate-rising spree has punctured the housing market.
The Bank of England said that net mortgage approvals for house purchases fell from 49,500 in July to 45,400 in August.
That’s the lowest number of home loans approved by lenders since February this year, and below the 47,400 consensus.
Net approvals for remortgaging saw “a significant decline” from 39,300 in July to 25,000 in August, the lowest since July 2012, the Bank said.
The effective interest rate, the actual interest paid, on newly drawn mortgages saw a 16 basis point increase and now sits at 4.82%.
Net borrowing of consumer credit by individuals amounted to £1.6 billion in August, up from £1.3 billion in the previous month, while households withdrew £0.3 billion from banks and building societies in August, following two consecutive months of net deposits.