Despite mortgage numbers falling, levels of consumer credit stays strong.
The number of mortgage approvals in September was 66,232, a decrease on the previous month, and July’s 6 month high of 69,360. There was also a slight drop in the growth of borrowing in September. This fell from 10% in August to 9.9% in September. There was however, an increase in net unsecured consumer credit; this increased by £1.6bn, which was above the average of the previous few months, and above the expectations of economists.
The slower housing sales could be as a result of “weakened consumer purchasing power” due to lower real wages and the risk of higher interest rates. More on the housing market can be found on the Telegraph website.