Economy

November Sees a Decline in UK Mortgage Approvals to 65,700

UK Mortgage Approvals Drop in November

In a recent report by the Bank of England, mortgage approvals for house purchases in the United Kingdom witnessed a decline to 65,700 in November, down from 68,300 in October. This marks a significant shift in the housing market dynamics as the year comes to a close.

Remortgaging and Consumer Credit Trends

Similarly, approvals for remortgaging saw a slight decrease to 31,200 in November from 31,400 in October. The consumer credit sector also experienced a downturn, with figures dropping to £0.9 billion in November from £1.1 billion the previous month. This has led to a decrease in the annual growth rate for all consumer credit to 6.6% in November.

Interest Rates and Mortgage Debt

The effective rate on new personal loans to individuals increased by 11 basis points to 8.96%. Meanwhile, individuals borrowed £2.5 billion of mortgage debt, indicating a continued demand for housing finance despite the overall decline in approvals.