2021.01.0410:55:00UTC+00UK Mortgage Approvals Highest Since 2007

UK mortgage approvals increased to the highest level since 2007 underpinned by strong property market activity, data from the Bank of England showed Monday.

The number of mortgage approved in November increased to 104,969 from 98,338 in the previous month and was above economists' forecast of 82,500.

This was the highest since August 2007 and the recent strength in approvals has almost fully offset the significant weakness earlier in the year, the bank said.

There were 715,300 house purchase approvals up to November 2020, close to the number during the same period in 2019.

Net mortgage borrowings increased to GBP 5.7 billion in November from GBP 4.5 billion in October. Borrowing was the highest since March 2016.

Meanwhile, consumer credit remained weak in November, with households making net repayments of GBP 1.5 billion, following a net repayment of GBP 0.7 billion in October.

Consumer credit declined 6.7 percent annually, a new series low since it began in 1994.

Private non-financial companies raised GBP 2.3 billion from financial markets in November, down from GBP 7.8 billion in October. Overall, PNFCs borrowed GBP 2.1 billion of bank loans in November.

Within overall corporate borrowing, small and medium sized non-financial businesses continued borrowing more from banks, on net. In November, they drew down an extra GBP 1.8 billion in loans.

Net borrowing by large non-financial businesses was broadly flat in November, at GBP 0.2 billion.