The number of new mortgage approvals in the UK surged to its highest level in November, but overall lending remained weak, according to data released by the Bank of England.
It indicated that 52,854 new home loans were approved in November, up from 52,786 approvals in the previous month. Meanwhile, net mortgage lending, which accounts for repayments, climbed £571 million (S$1.15 billion) on a monthly basis.
According to a report by the Wall Street Journal, the increase in approvals is in line with economists’ expectations. However, Samuel Tombs, an economist at Capital Economics, noted that new loan approvals may soon slow, as funding difficulties may prompt banks to curb lending activity if the residential property market remains weak.
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