UK Mortgage Approvals Rise in June Despite Higher Borrowing Costs

• UK mortgage approvals for house purchases rose to 58,200 in June.
• Effective interest rate on new mortgages increased to 4.35 percent.
• Net mortgage debt borrowing surged to £7.7 billion.

Bank of England data revealed that UK mortgage approvals for house purchases increased to 58,200 in June, up from 56,600 in May. This rebound occurred despite a rise in the effective interest rate on newly drawn mortgages, which reached 4.35 percent during the month. Approvals for remortgaging also saw an uptick, climbing to 34,200 from 33,800. Net borrowing of mortgage debt by individuals significantly increased to £7.7 billion in June, alongside a slight rise in net consumer credit to £1.8 billion. While the figures indicate some resilience in the housing market, the total approvals for house purchases remained below the running six-month average of approximately 61,400.