Mortgage Approvals At Highest Since 2007

OCT MORTGAGE APPROVALS 97,532 VS SEP 92,091
OCT NET CONSUMER CREDIT -GBP0.590BN VS SEP -GBP0.630BN

OCT NET CHANGE SECURED LENDING GBP4.286BN, SEP GBP4.863BN

• The mortgage market remained strong in Oct with mortgage approvals increasing once again to the highest level since Sep 2007, while net mortgage borrowing was GBP4.3bn in Oct, down from GBP4.9bn recorded in Sep.
• Mortgage approvals in Oct were 33% higher than in Feb, while approvals for remortgages were 40% below Feb's level.
• Net consumer credit remained weak in Oct as consumers were making net repayments of GBP 0.59bn, unchanged from Sep.
• As a result the annual growth rate of of consumer credit dropped further to -5.6%, marking a new series low (began in 1994).
• The interest rate on overdrafts was 19.7% in Oct , while interest rates on new consumer credit increased 37 basis points to 5.15%, which is still low compared to 7% recorded in early 2020.
• The effective interest rate on mortgage borrowing ticked up to 1.78% in Oct, up from 1.74% seen in the previous month.