U.K. mortgage market recovered in August, following slowdowns by COVID-19, according to a press release. Households borrowed additional 3.1 billion pounds, net, secured on their homes, a rise from July’s 2.9 billion pounds. Mortgage approvals rose from July’s 66,300 to 84,700 in August.
- Consumer credit borrowing was 0.3 billion pounds, down from July’s 1.1 billion pounds.
- Firms raised 2.7 billion pounds from capital markets, a marginal decline from 3.0 billion pounds in July while borrowing from banks was 0.4 billion pounds
- Rate on interest-charging overdrafts was up by 4.2% to 19.00%, while credit borrowing rate rose seven basis points to 4.71%
- Effective mortgage interest rate unchanged
- Non-financial SMEs borrowed 2.2 billion pounds, net, from banks while large business borrowed 2.1 billion pounds
- Flow of money was -0.9 billion pounds, which followed a 25.6 billion pounds July increase
- Interest on deposits at historical lows.
- Previous net consumer credit revised to 1.1 billion pounds from 1.2 billion pounds
- Previous net lending revised higher to 2.9 billion pounds from 2.7 billion pounds
U.K.’s net mortgage approvals on house purchase the highest since October 2007. GBPUSD is UP 0.25%
