This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/uk-mortgage-approvals-housing-market-uk-finance-january-a8228626.html
The article has changed 5 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
UK mortgage approvals bounce back from four-year low in January | UK mortgage approvals bounce back from four-year low in January |
(35 minutes later) | |
The number of mortgage approvals for UK homebuyers bounced back from a four-year low in January, according to the latest data from UK Finance. | The number of mortgage approvals for UK homebuyers bounced back from a four-year low in January, according to the latest data from UK Finance. |
The body, which collects data from British high street banks, reported that there were 40,117 approvals for house purchase in the month, following the slump to just 36,085 in December, which had been the lowest since April 2013. | |
UK Finance said this 11 per cent monthly jump reflected people taking advantage of mortgage deals on offer at the end of last year. | |
The data is likely to settle nerves about the sustainability of the UK housing market by presenting December’s decline as a blip rather than a trend, possibly reflecting a knee-jerk response from buyers to the Bank of England’s first interest rate rise in a decade in November. | |
But some analysts said its outlook was still weak, pointing to falls in new buyer enquiries reported by surveyors. | |
The Royal Institution of Chartered Surveyors reported that the net balance for such enquiries in January was –11 per cent, the 10th month in a row that the reading has been negative. | |
“We’re reluctant to conclude that January’s bounce back in mortgage approvals means its back to business as usual for the housing market,” said Samuel Tombs of Pantheon. | “We’re reluctant to conclude that January’s bounce back in mortgage approvals means its back to business as usual for the housing market,” said Samuel Tombs of Pantheon. |
UK Finance also reported that consumer credit fell by 0.2 per cent in January, while net credit card lending was just £4m, down from £86m in the previous month. | UK Finance also reported that consumer credit fell by 0.2 per cent in January, while net credit card lending was just £4m, down from £86m in the previous month. |
“Higher levels of repayments on credit cards...is expected at this time of year as customers pay off their festive spending,” said Eric Leenders, of UK Finance. | “Higher levels of repayments on credit cards...is expected at this time of year as customers pay off their festive spending,” said Eric Leenders, of UK Finance. |
But the news of a cooling will nevertheless hearten the Bank of England, where regulators have seeking to dampen unsecured consumer credit growth over the past year amid fears of a lending bubble. | |