Nearly 30,000 mortgage approvals were made in January 2019, an increase of 1.5% versus a year ago. In the same time frame, re-mortgaging approvals declined by 3.1%. Other statistics show that borrowing from both credit cards and personal loans and overdrafts were up by over 4% from January 2018 to January 2019. Meanwhile, personal deposits into accounts rose by only 0.4%, suggesting that people are still trying to keep cash on hand amidst economic uncertainty. Samuel Tombs of Pantheon Economics said that “mortgage lending is holding up,” but he was “reluctant to conclude” that the UK housing market is on a path to recovery.
Key Takeaways:
- According to UK Finance, more home buyers in January 2019 were approved for a mortgage compared to January 2018.
- Levels of credit card borrowing and personal loans and overdrafts increased over the past 12 months.
- The housing market today is more sensitive to changes in interest rates compared to the past.
“We’re reluctant to conclude, however, that housing market activity is on a sustainable recovery path. Samuel Tombs, Pantheon Macroeconomics”