UK Mortgage Approvals Unexpectedly Fall In November

(RTTNews) - UK house purchase approvals unexpectedly declined in November, after a rebound in the previous month, figures from the British Bankers' Association showed Thursday.

The number of approvals for house purchase fell to a seasonally adjusted 44,960 from 45,463 in October, revised from 45,437. Economists had forecast a higher figure of 46,000.

Year-on-year, approvals rose 20 percent in November. All months this year thus far witnessed annual increases in approvals, the BBA said.

Overall mortgage approvals increased 25 percent year-on-year in November.

Gross mortgage borrowing was GBP 12.8 billion in November, which was 28 percent higher than a year ago. The last two months have seen the highest monthly totals for seven years, the group said.

Unsecured borrowing rose 5.7 percent annually, with a 5.5 percent climb in credit card borrowing. Lending to businesses excluding real estate grew 0.6 percent.

"These statistics show the continued strength of the mortgage market, with monthly new lending higher than at any time over the past seven years," BBA Chief Economist Richard Woolhouse.

"Net lending to companies is now expanding, particularly in the wholesale and retail sectors, as businesses take advantage of record low interest rates."