Mortgage approvals in the UK surged to a 15-month high in August, as property investors fuelled demand, according to the British Bankers Association (BBA).
Lenders signed off 35,226 loans for home purchases, an increase from the 33,734 in July. Compared to last year, mortgage approvals were higher by 14 percent.
Falling consumer confidence and reduced spending power in the UK is undermining housing demand. The Bank of England (BoE) pushed down interest rates this month. It is “increasingly probable for banks to acquire more bonds to boost a faltering recovery,” said David Dooks, Director of Statistics at the BBA.
“Banks’ new mortgage lending has ticked up in the past couple of months with higher buy-to-let demand.”
He noted that the “weak economic environment continues to undermine confidence in both household and business sectors.”
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