Mortgage Approvals Drop
UK Mortgage Approvals Hit 32-Month Low As Higher Borrowing Costs Strain Housing Demand
Anonymous
UK mortgage approvals fell for a second straight month in August 2026, reaching their lowest level since December 2023 as higher borrowing costs weighed on housing demand. Approvals for house purchases declined to about 54,900, while remortgage approvals also slipped; the rate on newly issued mortgages rose to 4.60% from 4.45% in July. Despite the drop in approvals, net mortgage borrowing increased to £4.4 billion from £4.1 billion, though it remained below its recent six-month average. Consumer credit borrowing also accelerated to £2.5 billion, with credit-card borrowing rising particularly sharply. Financial-sector commentators said persistent affordability pressures may be pushing households to rely more on credit and urged lenders to identify borrowers in difficulty early.
Key Points
1
House-purchase approvals came in below economists’ expectations: 54,918 approvals versus a forecast of no change, Bloomberg reported.
2
Gross mortgage lending fell to £23.6 billion from £25.3 billion in July, below its six-month average of £26.5 billion; repayments also eased, to £20.4 billion from £21.1 billion.
3
The annual growth rate of net mortgage lending held steady at 3.6%, while annual consumer-credit growth accelerated to 9.6% from 9.3%.
4
Households deposited £4.7 billion with banks and building societies in August, up from £3.8 billion in July.
Sentiment
Mostly NegativeNEGATIVENEUTRALPOSITIVE
Publishers
15
Articles
59
Reach
74
Topics
A
AnonymousAuthor
