Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Net mortgage approvals and approvals for remortgaging in the UK increased in June, according to the Bank of England on Monday.
Net mortgage borrowing by individuals was £100 million in June, swung from net repayments of £100 million in May and record high net repayments of £1.1 billion in April.
Net mortgage approvals for house purchases rose to 54,700 in June from 51,100 in May, while approvals for remortgaging rose to 39,100 from 34,100 during the same period.
The effective interest rate on newly draw mortgages, meaning the actual interest rate paid, increased by a further 7 basis points to 4.63% in June.
The BoE’s own benchmark interest rate is currently 5.0%, following a 50 basis point hike in early June. The central bank’s next rate decision is on Thursday this week.
The BoE noted that net borrowing on consumer credit by individuals rose to £1.7 billion in June, the highest since April 2018.
Copyright 2023 Alliance News Ltd. All Rights Reserved.