MNI POLICY: Mortages Rates, Approvals Dip In Sep>

-MNI: BOE UK Sep house purchase approvals 65,269 v 66,101 Aug

By David Robinson and Jai Lakhani

     LONDON (MNI) - Mortgage approvals and interest levels on fixed rate 

mortgages both fell in September, Bank of England data showed.

     The following are key points from the data sets:

     -The data showed that despite the BOE Monetary Policy Committee 25 

basis point hike in August many mortgagees have seen borrowing costs 

heading down, rather than up, while supply of mortgages remained 

subdued.

     In September there were 65,269 mortgage approvals, down from 66,101 

in August and little changed from 65,046 in July. 

     -The BOE's quoted, or shop window, rates data highlighted the 

decline in offered lending rates. On a two year 75% loan-to-value 

mortgage the borrowing rate fell to 1.71% from 1.75% in August and the 

lowest level since April.

     For 90% and 95% two year LTV loans the interest rates were the 

lowest on record, at 2.12% and 3.39% effectively.

     -Net consumer credit fell to stg785 million in September from 

stg1.215 billion in August, as a result of weak car registrations in 

September meaning a sharp fall in new borrowing for car finance. Net 

consumer credit was at a six-month low. 

     -While offered mortgage rates hit fresh low, other forms of 

borrowing remained high. For instance, the rate on consumer overdrafts 

has stayed at its highest level since October 2017 for the last four 

months in a row. Also, the average rate on the stock of floating-rate 

mortgages rose to 3.07% in September from 2.80% in August.  

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

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