UK Mortgage Approvals At 18-Month High

RTTNews | 54 days ago
UK Mortgage Approvals At 18-Month High

(RTTNews) - UK mortgage approvals increased to a one-and-a-half year high in March as the impact of higher interest rates waned, data published by the Bank of England showed on Tuesday.

Net mortgage approvals for house purchases increased to 61,300 in March from 60,500 in February. This was the highest since September 2022 and also above the expected level of 61,000.

By contrast, net approvals for remortgaging decreased to 34,200 from 37,700 in the previous month.

The effective interest rate, which is the actual interest paid on newly drawn mortgages, fell by 17 basis points to 4.73 percent in March.

Over the last five consecutive meetings, the BoE has kept its interest rate unchanged at 5.25 percent, the highest level since early 2008.

Data showed that individuals borrowed only GBP 0.3 billion of mortgage debt in March compared to GBP 1.6 billion borrowing in February. On a yearly basis, net mortgage lending fell 0.1 percent. Meanwhile, gross lending increased to GBP 20.1 billion from GBP 18.6 billion in February. This was the highest figure since February 2023. Consumer credit rose to GBP 1.6 billion from GBP 1.4 billion in the previous month. Consumer credit growth held steady at 8.8 percent in March.

Net borrowing through credit cards climbed to GBP 0.7 billion, while borrowing through other forms of consumer credit remained unchanged at GBP 0.9 billion.

Further, businesses repaid a net GBP 1.1 billion of loans compared to GBP 2.8 billion in February. The annual growth in borrowing by large businesses eased to 0.5 percent from 1.4 percent. Lending to SMEs posted a broadly stable decline of 4.7 percent.

These figures provide further evidence that the drag from high interest rates is fading, the supply of credit is increasing and the economic recovery is well underway, economists at Capital Economics, said.

read more
UK Private Sector Grows At Slowest Pace In 7 Months

UK Private Sector Grows At Slowest Pace In 7 Months

The UK private sector growth weakened to a seven-month low in June as the slowdown in the service sector growth offset the stronger performance in manufacturing, flash survey results published by S&P Global revealed on Friday. The flash composite output index dropped unexpectedly to 51.7 in June from 53.0 in May. The score was forecast to rise marginally to 53.1.
RTTNews | 2 days ago
UK Public Debt Highest Since 1960s; Budget Deficit Remains Below Estimate

UK Public Debt Highest Since 1960s; Budget Deficit Remains Below Estimate

The UK public sector net debt rose to its highest level since early 1960s, while public sector borrowing remained below the official estimate, the Office for National Statistics reported Friday. Public sector net debt excluding public sector banks was estimated at 99.8 percent of gross domestic product at the end of May. This was 3.7 percentage points more than at the end of May 2023.
RTTNews | 2 days ago
UK Retail Sales Rebound In May

UK Retail Sales Rebound In May

UK retail sales rebounded in May as sales across all sectors recovered after poor weather damped turnover in April, official data revealed on Friday. The retail sales volume grew 2.9 percent on a monthly basis, offsetting the 1.8 percent fall in April, the Office for National Statistics reported. The growth also exceeded economists' forecast of 1.5 percent.
RTTNews | 2 days ago
Bank Of England Holds Rate At 16-Year High Despite Slowing Inflation

Bank Of England Holds Rate At 16-Year High Despite Slowing Inflation

The Bank of England retained its key policy rate on Thursday at a 16-year high despite inflation easing to the 2 percent target as policymakers are still concerned about services inflation and wage growth. The Monetary Policy Committee, led by Governor Andrew Bailey, decided to hold the bank rate at 5.25 percent again in a split vote. The current bank rate is the highest since early 2008.
RTTNews | 3 days ago
UK Inflation Eases To 2% Target

UK Inflation Eases To 2% Target

UK consumer price inflation hit the 2 percent target in May, data from the Office for National Statistics showed on Wednesday. Consumer price inflation softened to 2.0 percent in May, as expected, from 2.3 percent in April. The central bank targets to keep inflation at 2 percent.
RTTNews | 4 days ago
UK Economy Flatlines As Election Looms

UK Economy Flatlines As Election Looms

The UK economy stagnated in April as services growth was offset by falls in production and construction output, which was largely caused by an unusually wet weather, and dealt a setback to Prime Minister Rishi Sunak ahead of the July 4 general election. Gross domestic product remained flat on month, as expected, after expanding 0.4 percent in March, the Office for National Statistics said Wednesd
RTTNews | 11 days ago
UK Jobless Rate Falls; Wage Growth Remains Strong

UK Jobless Rate Falls; Wage Growth Remains Strong

The UK unemployment rate fell to the lowest since the middle of 2021 but the wage growth remained strong in three months to April, adding weight to the view that the next Bank of England interest rate cut will be in August. The unemployment rate rose to 4.4 percent in the three months to April from 4.3 percent in three months to March, the Office for National Statistics reported.
RTTNews | 12 days ago
UK Job Placements Fall At Slowest Pace In More Than A Year: KPMG/REC Report

UK Job Placements Fall At Slowest Pace In More Than A Year: KPMG/REC Report

UK permanent staff appointments fell for the twentieth consecutive month in May but the pace of decrease was the softest since March 2023, a report compiled by S&P Global showed on Monday. Recruitment consultants cited delayed decision making and a lack of demand amongst companies as reasons for the fall in recruitment activity, the KPMG/REC Report on Jobs revealed.
RTTNews | 13 days ago