Mortgage lending falls but approvals increase

Mortgage approvals have improved for the first time since August, with the Bank of England’s Money and Credit report showing net mortgage approvals for house purchases increased to 43,500 in February from 39,600 in January. However, lending fell to its lowest level since April 2016, excluding the pandemic. The report shows that homeowners borrowed £700m in February, down from £2bn in January. Martin Beck, chief economic adviser to the EY Item Club, said: “The latest household lending data indicated continued weakness in housing market activity, albeit with signs that the worst may be in the past”. Karen Noye, a mortgage expert at Quilter, suggested people were still in "wait-and-see" mode as borrowing costs remained high – but added that the rebound in approvals meant "green shoots might be appearing" in the housing market. 

BBC News (29/03/2023)   City AM (29/03/2023)   The Daily Telegraph (29/03/2023)   The Times (29/03/2023)