BOE: House Approvals Down Even as New Mortgag Rates Slip>

-BOE UK House Approvals Fall to 66,232 in Sept from 67,232 in Aug

-BOE UK Sep Net Mortgage Lending Stg3.848 Bn vs Stg3.929 Bn in Aug

-BOE UK Sep Net Consumer Credit Stg1.606 Bn vs Stg1.760 Bn in Aug

-BOE UK Sep Credit Card Lending Growth Highest Since May 2016

     LONDON (MNI) - Mortgage approvals fell modestly in September, even 

as average mortgage rates on new loans partially reversed a rise in 

August, according to Bank of England data released on Monday. 

     The number of mortgage approvals slid to 66,232 last month from 

67,232 in July. 

     The average effective interest rate on new mortgages retreated to 

1.97% in August, after rising to 2.00% in July. However, interest rates 

could soon resume their upward path if the Bank of England's Monetary 

Policy Committee lifts the base rate, as many economists expect, later 

this week. 

     The net change in mortgage lending declined to Stg3.848 billion 

last month from Stg3.929 billion in August, but remained above the 

six-month average change of Stg3.6 billion. 

     Consumer credit grew by 1.606bn in September, slightly below the 

level set in August (1.760bn), however within this there was a 

significant rise in credit card borrowing.        

     Unsecured credit card lending rose by Stg641 million in September, 

the biggest rise since May of 2016, after a Stg436 million increase in 

August.  

     The Bank of England's Financial Policy Committee has expressed 

concerned about what it terms pockets of the unsecured credit market and 

has urged banks to lift capital cushions against potential future losses 

from unsecured lending. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

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