The number of mortgage approvals fell back in July against a backdrop of fears over a rise in the Bank of England’s interest rates, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.
There were 65,356 house purchase mortgage approvals in July, down 1.8 per cent from 66,582 in June and halting an upward trajectory that has broadly persisted for the previous eight months.
On an annual basis, there were 0.2 per cent fewer approvals, down from 65,517 in July last year. This was the first year-on-year fall since March.
The decline comes after one member of the Bank of England’s Monetary Policy Committee broke ranks and voted in favour of an interest rate hike last week.
E.surv director, Richard Sexton, said: “The Bank of England has been beating the drum over a base rate rise that has yet to appear. Their hawkish rhetoric has had a knock-on effect on the mortgage market, with some banks beginning to withdraw their lowest-interest mortgage deals. In turn, this appears to have dampened demand for house purchase lending in the short-term, while stimulating remortgage activity.”