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Mortgage Approvals At Highest Since 2007

UK DATA
MNI (London)

NOV MORTGAGE APPROVALS 104,969 VS OCT 98,338

NOV NET CONSUMER CREDIT -GBP1.539BN VS OCT -GBP0.698BN

NOV NET CHANGE SECURED LENDING GBP5.678BN, OCT GBP4.466BN

The mortgage market remained strong in Nov with approvals rising to the highest level since Aug 2007. Mortgage borrowing rose to GBP5.7bn in Nov and was the highest since Mar 2016. However, the recent strength in net mortgage borrowing only partly offset the weakness seen earlier in the year. Approvals for remortgages rose slightly in Nov but were 33% below Feb's level. Net consumer credit declined further with net repayments recording GBP1.5bn in Nov and reflecting a fall in new borrowing. As a result the annual growth rate of consumer credit dropped further to -6.7%, again marking a new series low (began in 1994). The effective interest rate on new consumer credit ticked up 31bp to 5.46% in Nov, while the interest rate on overdrafts increased to 20.62% and the cost of credit card borrowing fell to a new series low of 17.49%. The effective interest rate on mortgage borrowing ticked up to 1.83% in Nov, which is close to the rate at the beginning of the year (1.85% in Jan).

MNI London Bureau | +44 203-865-3814 | irene.prihoda@marketnews.com

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