Falling borrowing costs pushed mortgage approvals to the highest level in 17 months in February as homeowners took advantage of declining rates and an improving economy.
Monthly data from the Bank of England showed a decline of 0.3 percentage points in the average interest rate charged on new mortgages, the lowest reading in six months.
The drop helped to drive up mortgage approvals to 60,400 in February, beating economists’ forecasts of 55,600 and the 56,000 noted in January. Mortgage approvals are now at the strongest level since September 2022, the month before the mini-budget of Liz Truss and Kwasi Kwarteng led to a sharp rise in market interest rates.
Rising mortgage approvals are the latest sign of a recovery in the housing market after more