-BOE Data Released Ahead Of Schedule
-BOE: Oct Mortgage Approvals 52,982 Vs 50,415 In Sep
-BOE: Oct Net Secured Lending Change stg0.199 bln Vs Stg582 bln Sep
LONDON (MNI) – Mortgage approvals picked up in October, rising to
their highest level since January, likely boosted by the fall in
interest rates on fixed rate mortgages.
Bank of England data, released ahead of schedule Wednesday, showed
a sharp fall in unsecured consumer credit but rising secured borrowing.
Bank of England officials have said the BOE’s Funding for Lending Scheme
does appear to be boosting mortgage activity, and its own figures show
mortgage rates falling.
Mortgage approvals in October rose to 52,982, a 5.1% rise on the
50,415 recorded in September and the largest rise since the 57,857
posted in the first month of this year. This was above analysts’ median
forecast for a 51,500 outturn.
While the approvals figures point to an acceleration in housing
market activity in months to come, actual mortgage lending growth
slowed.
Secured net lending in October rose by Stg0.199 billion, down from
stg0.582 billion in September
Net consumer credit, however, shrunk by stg0.463 billion, having
risen stg1.103 billion in September, its lowest reading since December
2011. Analysts’ median forecast was for a stg0.4 billion rise.
Total net lending to individuals fell by stg0.257 million, having
surged stg1.703 billion in September.
Some of the weakness, aside from mortgage approvals, in the lending
data may reflect payback from the strong figures in September.
The fall in total net lending “represents only a small step
back from September’s chunky stg1.7 billion rise, which was the largest
for four years,” Samuel Tombs of Capital Economics said.
Net credit card lending also declined in October, falling stg0.132
billion on the month after a stg0.307 billion increase in September.
-London newsroom: +44 207 862 7491 email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABDS$]
