Mortgage Approvals Reach Six-Month High as Interest Rates Fall

Households' deposits grow as consumer credit borrowing decreases, signaling cautious financial management amid cost-of-living crisis.

New mortgage approvals reached a six-month high in December, with 50,459 mortgages approved for house purchase, marking the highest total since June 2023.
The 'effective' interest rate on newly-drawn mortgages fell from 5.34% in November to 5.28% in December, the first drop since November 2021.
Overall households’ deposits with banks and building societies, as well as NS&I accounts, grew by £6.0 billion in December, more than the average monthly rate of £4.2 billion over the past six months.
Net consumer credit borrowing fell to £1.2 billion in December, from £2.1 billion in November, mainly driven by lower borrowing through credit cards.
The average mortgage rate on offer for a five-year fixed deal has dropped to 5.18% and 5.56% for the typical two-year fixed product.