UK mortgage approvals drop to 14-month low in September, says BBA
UK home loan approvals sank for the third month in a row to a 14-month low in September, according to data out on Thursday.
Approvals dropped 10% to 39,271 against a year ago and by 19% from January’s 76-month high of 48,462, the British Bankers Association (BBA) said. Approvals for re-mortgaging and equity release also fell.
Economists said the figures showed government and regulatory measures to cool the housing market, such as a cap on the amount people can borrow relative to their incomes, were having an impact.
Richard Sexton, director of E.surv chartered surveyors, said: "The changes introduced in the Mortgage Market Review took a few months to settle down. But looking ahead, the road looks steady."
Howard Archer at IHS Global Insight said: "The BBA data reinforce the impression that housing market activity is seeing an underlying loss of momentum. There are also clear signs in the latest survey evidence that buyer interest has softened recently."