BOE: Jan Mortgage Approvals Rise Sharply; Highest Since July>

-BOE UK Jan house purchase approvals 67,478 vs 61,692 Dec

     LONDON (MNI) - Mortgage approvals rose sharply in January to their 

highest level since July and average mortgage interest rates dipped, 

according to Bank of England data. 

     The number of mortgage approvals rose to 67,478 in January from 

61,692 in December, hitting their highest level since the 69,037 posted 

last July. If approvals were to remain around January's level, they 

would be running faster than the BOE Monetary Policy Committee 

projected. 

     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. This would be accompanied by subdued house price 

inflation, of around 0.5% a quarter, and flat housing investment. 

     Having risen in December following the November rate hike average 

mortgage interest on the stock of mortgages fell to 2.53% in January 

from the previous month's 2.55%, and on new business fell to 1.96% from 

2.02%. 

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

mortgage rates, however, picked up. 

     The average rate on the popular 3 year 75% loan-to-value mortgage 

rose to 1.7% from 1.69%, the highest since July 2017. 

-email: david.robinson@marketnews.com  

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