House purchase lending falters in July as threat of base rate rise draws closer
- July sees 65,356 house purchase approvals, down 1.8% on June due to rate-rise uncertainty
- Annual growth slows: house purchase approvals fall 0.2% year-on-year, after three months of strong annual increases
- Small deposit lending falls 7.1% year-on-year, with just 11,400 loans in July as banks withdraw cheapest mortgage rates
The number of mortgage approvals for house purchase has fallen back against a backdrop of the Bank of England’s threats to raise the base rate, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.
There were 65,356 house purchase mortgage approvals in July, down 1.8% from 66,582 in June, slipping from an upward trajectory that has broadly persisted for the previous eight months.
On an annual basis there were 0.2% fewer approvals, down from 65,517 in July 2014. This is the first year-on-year fall since March 2015.
This fall comes as one member of the Bank of England’s nine-strong Monetary Policy Committee voted to raise the base rate from its current historic low of 0.5% – and as warnings of an encroaching increase continue.
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