Connect with us

Hi, what are you looking for?

Editor’s Pick

Mortgage approvals lowest in two years after mini-budget chaos

Mortgage approvals fell to their lowest level in two years in November as rising borrowing costs and the aftermath of the government’s mini-budget put off prospective homeowners.

Borrowing data from the Bank of England showed a larger-than-expected fall in the number of new mortgages to 46,100 in November, down from 57,900 the previous month and below economist estimates of about 55,000.

The UK’s mortgage market stabilised after lending was thrown into temporary turmoil following the market panic that accompanied the government’s mini-budget on September 23. Jeremy Hunt, the new chancellor, was appointed in mid-October to reverse most of Liz Truss’s tax-cutting policies and restore investor calm.

Despite the return to political stability in November, rising interest rates and higher mortgage costs have weighed on the property market. The Bank’s figures show the interest rate paid on newly-drawn mortgages rose again by 26 basis points to 3.35 per cent in November.

November’s data coincided with the Bank’s monetary policy committee voting to raise interest rates by 75 basis points to 3 per cent, the single biggest jump in borrowing costs in more than three decades.

Overall mortgage lending still rose in November to £4.4 billion from £3.6 billion, while the number of homeowners opting to remortgage with a different lender fell to 32,500 from 51,300 in October.

Credit data from the Bank also showed that consumers were forced to ramp up credit card borrowing before the Christmas period and in the midst of a cost-of-living crisis. Overall consumer credit doubled in November to £1.5 billion from £700 million, with most of it driven by credit card loans, which tripled from £400 million to £1.2 billion in November.

Households are increasingly turning to borrowing to meet their essential spending needs as high inflation raises the cost of goods and services and erodes the real value of pay packets. Figures from Barclaycard show that consumers spent a third more on essentials such as food and energy bills last year.

In another indicator of stretched finances, the level of households savings dipped to £5.7 billion from £6.1 billion.

Ashley Webb, economist at Capital Economics, said the data indicated “that households are feeling the pinch from the cost of living crisis and are turning to borrowing to tide them over”.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!


Editor’s Pick

<?xml encoding=”utf-8″ ??> Ava Whetstone-Magee, the founder of Avalanche Equestrian talks about the lightbulb moment which led her to start her business at the age...

Editor’s Pick

<?xml encoding=”utf-8″ ??> The exodus of workers from the jobs market over the pandemic has weakened prospects for Britain’s economic growth, the governor of...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Will Polston, talks to Business Matters about how helping ambitious owners to maximise their potential has resulted in him becoming a finalist...


Elon Musk talks about his company’s Starlink project at the Mobile World Congress, Barcelona, Spain, June 30, 2021. — BRISA PALOMAR / PACIFIC PRESS/SIPA...


PHILSTAR FILE PHOTO The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official...


Television (TV) advertising is shifting toward addressable TV, a service that allows advertisers to show different ads to different audiences watching the same program,...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.