LONDON (dpa-AFX) - UK mortgage approvals rose to a three-month high in June and consumer credit increased notably, official data revealed on Tuesday.
Approvals for house purchases increased to a three-month high of 64,167 in June from 63,288 in May, the Bank of England reported. Approvals were above economists' forecast of 63,000.
Net borrowing of mortgage debt by individuals increased by GBP 3.1 billion to GBP 5.3 billion in June, compared to a GBP 2.8 billion increase of net borrowing to GBP 2.2 billion in May.
The 'effective' interest rate, which is the actual interest paid on newly drawn mortgages decreased for the fourth consecutive month, to 4.34 percent from 4.47 percent in May.
Approvals for remortgaging also increased 200, to 41,800 in June, which was the highest number of approvals for remortgaging since October 2022, data showed.
Net borrowing of consumer credit by individuals rose to GBP 1.4 billion from GBP 0.9 billion in the previous month.
The annual growth rate for all consumer credit accelerated to 6.7 percent from 6.5 percent in May.
In June, businesses repaid a net GBP 2.5 billion of loans to banks and building societies compared with GBP 8.6 billion of net borrowing in May.
Large non-financial businesses repaid GBP 2.8 billion, compared to GBP 8.3 billion of net borrowing in May. This was the highest net repayment from large businesses since June 2023.
Meanwhile, net borrowing from small and medium-sized non-financial businesses remained unchanged at GBP 0.4 billion in June.
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