BOE: Feb Mortgage Approvals Fall Back Following Jan Spike>

-BOE UK Feb house purchase approvals 63,910 vs 67,110 Jan

     LONDON (MNI) - Bank of England data showed that mortgage approvals 

fell back in February after a sharp rise in January as volatility 

continued in the monthly numbers, with the underlying trend heading 

gently down. 

     Mortgage approvals in February fell to 63,910 from 67,110 in 

January but up from 61,248 in December. The Bank noted that mortgage 

approvals and remortgaging in February were both below their six month 

averages. 

     The data are compatible with a tepid housing market. 

     Remortgaing approvals in February declined to 46,622 from 48,690 in 

January, below the six month average of 65,162. 

     The BOE's February Inflation Report stated that in Q1 to Q3 2018 it 

reckoned it was likely that mortgage approvals would average around 

65,000 per month, with subdued house price inflation of just around 0.5% 

a quarter. Recent data are compatible with this projection. 

     Having risen in December following the November rate hike average 

mortgage interest on the stock of mortgages fell to 2.51% in February 

from 2.53% in January but up from 2.50% in November. 

     On new mortgage business, average interest rates rose to 2.02% from 

1.96%.  Some quoted mortgage rates, which are offered or 'shop window' 

mortgage rates, saw the spread widen between 75% and 95% loan-to-value 

by 10 basis points. 

     The picture on headline quoted rates was mixed, with no clear 

direction compared to January.    

-email: david.robinson@marketnews.com  

[TOPICS: M$B$$$,M$$BE$,MABDS$]