UK mortgage approvals rise more than expected to five-month high

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UK mortgage approvals rose more than expected to a five-month high in November, according to Bank of England data that points to a pick-up in the property market as interest rate expectations ease.

Net mortgage approvals for house purchases rose to 50,100 in November from 47,900 in October, the data showed.

This was higher than the 48,500 forecast by economists polled by Reuters and the highest reading since June.

Net approvals for remortgaging rose from 24,000 in October to 27,000 in November.

Mortgage approvals dropped below pre-pandemic levels from the second half of 2022, reflecting the rise in the BoE’s benchmark rate from an all-time low of 0.1 per cent in November 2021 to the current 5.25 per cent. 

However, they have been rising since September as markets reassess their interest rate expectations following lower than expected inflation in October and November.