MNI POLICY: BOE: Mortgage Interest Rates Hit New Low>

-Jan Mortgage Approvals 70,888 vs 67,930; Highest Since Feb 2016

     By David Robinson and Irene Prihoda

     MNI (London) - Mortgage approvals rose to their highest level for 

almost four years while the interest rates on new mortgages hit a record 

low, Bank of England data showed. 

     The following are key points from the BOE Money and Credit data 

release:

     -The rise in mortgage approvals to 70,888 in January from 67,930 in 

December lifted them to their highest level since February 2016.

     Approvals are normally a reliable indicator of housing activity in 

coming months, although the spread of coronavirus makes any such 

assumptions less sure than normal. 

     Net mortgage borrowing in January fell to GBP4.007 billion against 

GBP4.400 billion in December.

     -The cost of new borrowing for housing remains hit an all 

time low with the average effective rate on new mortgage falling to 

1.85% in January from 1.88% in December.

     Although the Bank of England Monetary Policy Committee left policy 

on hold at its end January meeting these data show how monetary 

conditions were easing, and since then market rate expectations have 

fallen markedly on the back of fears about the implications of the 

spread of coranavirus. 

      Mortgage rates look likely to hit fresh lows in coming months, 

with speculation intensifying over MPC easing.

--MNI London Bureau; tel: +44 203-865-3812; email: 

david.robinson@marketnews.com

[TOPICS: M$B$$$,M$E$$$,MX$$$$,M$$BE$]