Mortgage approvals and consumer credit ticked up in July to hit their highest levels in almost two years and since Liz Truss’s mini-budget.
Almost 62,000 mortgages were approved across the UK in July, marking an uptick on June and the highest level since September 2022, Bank of England data showed on Friday.
Some £2.8 billion was borrowed for mortgages in the meantime, against £2.6 billion a month earlier and the most since November 2022.
The mortgage approval figure beat analysts’ expectations, with the return to near-September 2022 levels coming after former prime minister Liz Truss’ mini-budget at the time sent the housing market into turmoil.
“The interest rate cut at the start of this month with the prospect of more rate cuts to come looks set to boost the mortgage market revival,” Bestinvest analyst Alice Haine commented.
“With inflation now in safer territory and wage growth still fairly robust, the road ahead for mortgage borrowers appears to be clearing.”