UK mortgage approvals at the lowest level since mid-2020

UK mortgage approvals at lowest level since mid-2020

The number of mortgages approved for UK house purchases fell to its lowest level in 16 months in October as the “distortive effect” of the stamp duty holiday came to an end.
Figures from the Bank of England showed that 67,200 new homebuyer mortgages were approved during the month, down from 71,851 and well below the high of 104,547 recorded in November 2020. The Guardian
The Bank’s data also showed a sharp fall in the sums advanced to borrowers over the month, with net mortgage lending of £1.6bn in October, down from £9.3bn in September.
However, the falls follow a frenzied few months in the UK property market where, according to figures from one firm, more than £500bn was spent on homes in the year to September.
Stamp duty breaks across the UK led to a rush to buy, which, combined with changing priorities for buyers as a result of the coronavirus pandemic, brought forward sales and meant larger homes became more popular.

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