MNI: BOE Aug Mortgage Approvals Highest Since Jan>

-BOE UK Aug house purchase approvals 66,440 vs 65,156 Jul  

     LONDON (MNI) - Mortgage approvals in August hit their 

highest level since January, with average interest rates on mortgages

having risen only marginally since the Bank of England Monetary Policy 

Committee started tightening.

     Mortgage approvals rose to 66,440 in August, up from 65,156 in 

July, the highest outturn since the 67,275 seen in the first month of 

this year. The MPC first raised Bank Rate from 0.25% to 0.50% last 

November and then again to 0.75% this August, but mortgagees have seen 

little of the increase, supporting demand for new borrowing.

     The BOE's quoted rates data, showing 'shop window' mortgage 

interest rates, revealed that the average rate on a two year 75% 

loan-to-value (LTV) mortgage was 1.75%, up 2 basis points on the month 

and the highest since June 2016.

     This average rate, however, was only 14 basis points higher than 

when the MPC first hiked Bank Rate. On a 75% LTV three year fix, the 

average interest rate was again only 14 basis points higher than last 

November.

     The change in mortgage lending in August was a rise of stg2.904 

billion, down from a rise of stg2.970 billion in July.

     Unsecured borrowing, net consumer credit, in August rose by  

stg1.118 billion, up from stg0.838 billion in July. 

-London newsroom: e-mail: david.robinson@marketnews.com  

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