Mortgage Approvals Decline Slightly in January

The Bank of England reported a slight decrease in mortgage approvals for house purchases in the UK, dropping to 66,200 in January from 66,500 in December 2024. This minor dip raises questions about the stability of the housing market and consumer confidence.

Remortgaging and Consumer Credit on the Rise

In contrast, approvals for remortgaging saw an increase, moving up to 32,900 in January from 30,700 the previous month. Additionally, consumer credit reached £1.7 billion, an increase from £1.1 billion in December 2024, although the annual growth rate for all consumer credit slightly decreased by 0.1 percentage points to 6.4%.

Changes in Personal Loans and Mortgage Debt

The effective rate on new personal loans to individuals experienced a slight decline, dropping by 6 basis points to 8.79%. Meanwhile, individuals borrowed £4.2 billion in mortgage debt, indicating ongoing activity in the housing sector despite the slight decrease in mortgage approvals.