Mortgage approvals hit four-month low in September, BBA says

The number of mortgages approved by British banks in September fell to its lowest since May, data released on Monday showed.

According to the latest figures published by the British Bankers’ Association (BBA), said mortgage approvals for house purchases fell to a four-month low of 44,489 in September from 46,567, although they remained up 14% year-on-year.

"Borrowing figures in the mortgage market remain strong as customers take advantage of record low interest rates. In particular, remortgaging remains high as savvy customers secure attractive deals ahead of a possible rate rise," said BBA chief economist Richard Woolhouse.

Meanwhile, net credit card lending and lending for personal loans and overdrafts both declined from August to September, the report added.

“The dip in mortgage approvals in September could possibly reflect recent modestly reduced expectations of a near-term rise in interest rates,” said Howard Archer, chief UK and European economist at IHS Global Insight.

“It is also possible that lower mortgage approvals in September is a sign that housing market activity is being constrained by a shortage of properties on the market.”