UK mortgage approvals beat forecasts, consumer borrowing slows

(Sharecast News) - UK mortgage approvals rose more than expected in October, while consumer credit growth eased compared with the previous month. The Bank of England said on Monday that 65,018 mortgages were approved during October, down slightly from 65,647 in September, but ahead of the 64,200 forecast by economists.

Meanwhile, remortgage approvals dropped by 3,600 to 33,100 in October, even as the "effective" interest rate on newly drawn mortgages declined to 4.17% from 4.19% in September, its lowest level since January 2023.

On another note, net consumer borrowing decreased for a second consecutive month to £1.1bn in October, the lowest level in five months, down from a revised £1.4bn in the previous month and below market forecasts of £1.4bn.

In October, net borrowing through credit cards slightly decreased, dropping to £600m from £700m, while net borrowing through other forms of consumer credit, such as car dealership finance and personal loans, fell to £500m from £700m in September.

The annual growth rate for all consumer credit remained unchanged at 7.2%.





Reporting by Iain Gilbert at Sharecast.com