(Alliance News) - Net mortgage approvals and approvals for remortgaging in the UK decreased in July, according to the Bank of England on Wednesday.
Net mortgage borrowing by individuals was GBP200 million in July, up from GBP100 million in June and increasing for the third consecutive month.
Net mortgage approvals for house purchases decreased to 49,400 in July, from 54,600 in June. Meanwhile, approvals for remortgaging increased to 39,300 from 39,100 in June.
The effective interest rate on newly drawn mortgages, meaning the actual interest rate paid, increased by a further 3 basis points to 4.66% in July.
The BoE's own benchmark interest rate is currently 5.25%, following a 25 basis point hike earlier this month. The central bank's next rate decision is on September 21.
The BoE noted that net borrowing of consumer credit by individuals fell to GBP1.2 billion in July, from GBP1.6 billion in June.
By Harvey Dorset, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
