UK Mortgage Approvals Experience a Minor Decline

In January, the United Kingdom witnessed a slight decrease in mortgage approvals for house purchases, dropping to 66,200 from 66,500 in December 2024, as reported by the Bank of England on Friday.

Remortgaging and Consumer Credit Trends

Contrastingly, remortgaging approvals saw an uptick, rising to 32,900 in January from 30,700 the previous month. The consumer credit sector also showed growth, with figures reaching £1.7 billion, up from £1.1 billion in December 2024. However, 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 saw a minor decline of 6 basis points to 8.79%. Meanwhile, individuals borrowed £4.2 billion in mortgage debt, indicating a steady demand in the housing market.