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Summer slowdown: mortgage lending fell in August

Christina Hoghton
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Christina Hoghton

Despite the drop, lending has remained steady over the last three years, in the face of political and economic instability

Mortgage lending fell in August, according to the Bank of England.

The number of mortgage approvals for house purchase dropped to 65,500 in August, down from the 18 month high of 67,000 in July, but remained within the narrow range seen in recent years.

The total amount borrowed also fell. Mortgage borrowing by households weakened to £3.9 billion in August, after a strong July. Annual growth was unchanged at 3.2%, in line with growth rates of the past three years, said the Bank.

Andrew Montlake, managing director of mortgage broker, Coreco, said: “Mortgage approvals for house purchase in August were down on July but held up fairly well once you factor in the seasonal drop-off.

“Three years of delay and indecision have created a phenomenal amount of pent-up demand and that saw house purchase mortgage approvals in August stay at the six month average.

“Expect mortgage approvals in the Autumn and winter to be even more robust, as mortgage enquiries for home purchase really picked up in September.

“Despite a backdrop of political, economic and now constitutional chaos, the property and mortgage markets are ticking along quite well.