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UK mortgage approvals pick up as rates fall for first time since late 2021

Mortgage approvals ticked higher in December in a further tentative sign that the housing market is picking up, figures showed Tuesday.

The Bank of England reported that 50,500 loans for house purchases were agreed in December, up from 49,300 in November.

This was the highest figure since June but below the 52,500 Reuters-cited consensus.

The ‘effective’ interest rate - the actual interest paid - on newly drawn mortgages fell by 6 basis points to 5.28% in December, the first drop since November 2021.

Net approvals for remortgaging increased from 25,700 in November to 30,800 in December.

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