MNI DATA IMPACT: Lowest New Mortgage Rates For 2 Years - BOE)

     LONDON (MNI) - The Bank of England's October money and credit data showed

that the interest rates for borrowers declined further and the mortgage pipeline

constricted slightly.

     The following are key points from the data:

     --The average effective interest rate on new mortgages in October declined

to 1.96% from 2.00% in September, hitting its lowest level since October 2017.

The BOE has left Bank Rate steady at 0.75% but borrowers costs have declined in

recent months. On the stock of mortgage the average effective interest rate was

2.39% in October, unchanged from September but down from 2.42% in August and

2.41% in July.

     --Mortgage approvals, a reliable indicator of future housing market

activity, fell to 64,602 in October, down from 65,803 in September. Approvals,

however, are choppy month-by-month and were last lower in March this year, when

there were 62,610 approvals.

     --Net consumer credit, the measure of change in unsecured personal

borrowing, was up stg1.326 billion in October compared to just stg785 million in

September. Net consumer credit was last higher in February this year.

     --The various broad money data showed no, or negligible, growth on the

month in October and subdued growth on the year. Overall M4 was flat on the

month in October and up 3.6% on the year while M4 ex-IOFCs, a measure which

excludes intra-financial sector money flows, was up 0.1% on the month and up

3.6% on the year.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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