Mortgage approvals fall to two year low

Latest figures from the Bank of England show net mortgage approvals for house purchases fell to 60,000 from 61,000 in December, the fourth consecutive monthly drop and the lowest figure since January 2024. The decline follows uncertainty surrounding the November Budget. Remortgaging approvals also decreased slightly to 38,100, from 38,400 in December.

Net borrowing of mortgage debt by individuals decreased to £4.1 billion in January, from £4.5 billion in December, below the previous 6-month average of £4.5 billion.
Net mortgage approvals for house purchases decreased to 60,000 in January, below an average of around 64,100 over the previous 6-months. Approvals for remortgaging decreased slightly to 38,100 in January from 38,400 in December.

Net borrowing of consumer credit by individuals increased to £1.8 billion in January, from £1.7 billion in December, in line with the previous 6-month average of £1.8 billion. Within this, net borrowing through credit cards was £0.9 billion in January, up from £0.8 billion in December. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) remained unchanged at £0.9 billion in January.