02 April 2024
If you are covering the latest Money and Credit statistics, please see the following comment from Rosie Hooper, chartered financial planner at Quilter Cheviot:
"In February, the UK housing market showed signs of increased activity with the Bank of England reporting a rise in mortgage approvals for house purchases to 60,400 from January's 56,100, marking the highest level since September 2022. Individuals also borrowed a net amount of £1.5 billion in mortgage debt, a significant shift from the £1.1 billion in net repayments recorded in January. This increase is attributed to a reduction in mortgage rates to 4.90%, which has enhanced affordability and boosted buyer confidence.
"Additionally, remortgaging approvals saw a substantial rise, reflecting a growing trend of borrowers seeking better rates amidst a recovering market, despite the previous year's volatility. The data also highlighted a dynamic mortgage rate environment, with some lenders adjusting rates in response to changing financial conditions. There is likely pent up demand in the market due to many buyers opting to sit on their hands as they wait for a more stable purchasing environment and this spring might see many of these buyers return to the market.
"Overall, these developments indicate a positive momentum in the housing market, driven by improved borrower conditions and a stabilising interest rate landscape. However, in contrast to these results the Nationwide house price index this morning saw a 0.6% monthly decrease in house prices.
"On the other hand, net consumer credit borrowing saw a decrease to £1.4 billion in February, down from £1.8 billion in January, indicating a more cautious approach to unsecured borrowing amidst economic uncertainties."
