Mortgage lending rates are at their highest levels in more than six months – although the amount borrowed fell from November to December.
by Sarah Taffey Maguire, business reporter @taaffems
Tuesday 30 January 2024 at 14:27, United Kingdom
The effects of higher interest rates may be waning, according to the latest figures from the Bank of England.
The bank’s financial and credit data showed that the number of new real estate loans approved in December reached a level not seen in seven months.
Central bank figures showed that 50,500 new mortgages were approved last month, a number not seen since May last year.
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Meanwhile, the average interest rate on new mortgages fell for the first time since November 2021,
Decreased by 0.06 percentage points to 5.28%.
However, a fall of £830 million in net mortgage lending was also recorded, well below the £250 million rise expected by economists polled by Reuters.
Home buying activity was low as mortgages then became more expensive 14 in a row High interest rates by the bank.
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This meant that the houses were become cheaper.
Continued increases in interest rates at banks took the rate to 5.25% in August, the highest level not seen since 2008. retained in subsequent interest rate decisions By the organizer.
Tuesday’s data also showed growth in the number of people remortgaging – up to 30,800 in December from 25,700 in November.
The trend of increasing approvals is likely to continue as the average mortgage rate on offer for a five-year fixed deal has fallen to 5.18% and 5.56% for the typical two-year fixed product, according to financial information company Moneyfacts.
Some high street lenders, Including the UK’s largest building societyThe number of mortgage rates on offer fell this month.
The latest inflation and growth forecasts will be published by the bank’s interest rate-setting committee on Thursday along with its forecasts for future interest rate decisions.