Mortgage approvals fall in October

The increase in total net lending to individuals in October (£8.8 billion) was below the increase in September and the previous six-month average, according to data from the Bank of England (BoE). The twelve-month growth rate fell to 9.7% and the three-month annualised growth rate fell by 0.5 percentage points to 8.9%.

Within the total, the increase in net lending secured on dwellings (£7.3 billion) was below the increase in September and the previous six-month average. The twelve-month growth rate fell to 10.5%. The three-month annualised growth rate also fell, by 0.7 percentage points to 9.2%. The numbers of loans approved for house purchase (88,000), remortgaging (87,000) and other purposes (61,000) were all lower than in September.

The increase in net consumer credit in October (£1.4 billion) was above the increase in September and the previous sixmonth average. Net credit card lending rose by £0.2 billion, below the September increase. Net other loans and advances rose by £1.2 billion, higher than the September increase. The annual growth rate of consumer credit increased by 0.2 percentage points to 5.8% and the three-month annualised growth rate also increased, by 0.5 percentage points to 7.3%.