UK mortgage approvals fall in September

(Sharecast News) - Mortgage approvals fell a little more than expected in September, according to figures released on Thursday by the Bank of England. The latest monthly Money and Credit report showed that net mortgage approvals for house purchases declined to 53,400 from 54,800 in August. Economists were expecting a slightly smaller drop to 54,000.

Net borrowing of mortgage debt by individuals fell to £3.9bn in September from £4.2bn a month earlier, below the previous six-month average of £4.9bn.

The 'effective' interest rate - the actual interest paid - on newly-drawn mortgages rose to 4.63% from 4.60% Meanwhile, the rate on the outstanding stock of mortgages ticked up to 4.03% in September from 4.00% in August.

The report also showed that net borrowing of consumer credit by individuals fell to £1.9bn from £2.7bn in August. Within this, net borrowing through credit cards was £0.7bn in September, down from £1.3bn in August. Borrowing through other forms of consumer credit, such as car dealership finance and personal loans, declined to £1.2bn from £1.4bn.