Mortgage Approvals Decline

In a recent report by the Bank of England, it was revealed that mortgage approvals for house purchases in the United Kingdom have slightly decreased to 66,200 in January, down from 66,500 in December 2024. This indicates a subtle cooling in the housing market as we step into the new year.

Remortgaging and Consumer Credit Trends

Contrastingly, approvals for remortgaging experienced a rise to 32,900 in January, up from 30,700 the previous month. The consumer credit sector saw an increase, reaching £1.7 billion in January, compared to £1.1 billion in December 2024. However, the annual growth rate for all consumer credit saw a slight dip of 0.1 percentage points to 6.4%.

Personal Loans and Mortgage Debt

The effective rate on new personal loans to individuals saw a decrease, declining by 6 basis points to 8.79%. Meanwhile, individuals borrowed £4.2 billion of mortgage debt, indicating a continued interest in leveraging property for financial needs.