U.K. mortgage approvals for house purchases eased to their lowest level in four months during September, data from the British Bankers’ Association showed Monday.
The number of loans approved for house purchase dropped to 44,489 in September from 46,567 in August. It was the lowest level since the 43,153 approvals in May. House loan approvals rose 14 percent from a year ago
“Borrowing figures in the mortgage market remain strong as customers take advantage of record low interest rates,” Richard Woolhouse, chief economist at the BBA, said. “In particular, remortgaging remains high as savvy customers secure attractive deals ahead of a possible rate rise.”
Gross mortgage borrowing rose 17 percent year-on-year to GBP12.1 billion, while credit card purchases grew 6 percent, which Woolhouse attributed to buoyant consumer confidence and rising wages.
Meanwhile, bank lending to companies declined and remained subdued as net capital market finance grew. This was because larger companies favored the latter as an alternative to loans and overdrafts.
The material has been provided by InstaForex Company – www.instaforex.com