BOE: New Mortgage Interest Rates And Approvals Fall>

-BOE UK Oct house purchase approvals 64,575 vs 66,111 Sep 

     LONDON (MNI) - Mortgage approvals and average mortgage rates on new 

loans and the stock of loans all fell in October, Bank of England data 

showed. 

     The number of mortgage approvals fell to 64,575 in October from 

66,111 in September, its lowest outturn since September 2016. 

     UK housing market activity has weakened and in the November Budget 

UK Chancellor of the Exchequer Philip Hammond announced the abolition of 

a property transaction tax, stamp duty, for first time buyers to try and 

get younger people onto the housing ladder. 

     Borrowing has never been cheaper. The average effective interest 

rate on new mortgages fell to 1.92% in October from 1.97% and on the 

stock of loans it dropped to 2.50% from 2.52%, both series lows. 

     The BOE data, however, suggests that mortgage rates are going to 

pick up. The new effective rates are for loans made, whereas the BOE 

quoted, or advertised, rates data showed mortgage rates across a range 

of products move higher in October. 

     The net change in mortgage lending in October fell to stg3.392 

billion from stg3.752 billion in September.                             

     Unsecured consumer credit was little changed at stg1.451 billion on 

the month in October compared to 1.484 billion in September. 

-email: david.robinson@marketnews.com  

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