Analysts expect a gradual rather than sharp slowdown in the housing market
UK mortgage approvals slowed for the third straight month in August as the market continued to cool following a surge during the pandemic.
Mortgage lenders approved 74,453 mortgages, down from 75,100 in July.
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The decline was due to the government’s curtailment of the stamp duty holiday.
There was a slight recovery in borrowing in August compared to July, but the £5.3 billion borrowed was 20% lower than the average for the previous 12 months.
Laura Suter, Head of Personal Finance at AJ “It’s higher than the previous level.” Bell.
“Rather than the housing market falling completely off a cliff, as many feared, the final deadline for the stamp duty holiday approaches and many people who wanted to move are now in the race to get a mortgage. The housing market is likely to gradually slow down as more people join the universe. ”
“The country’s frugal lockdown saving methods were unaffected by the increased spending by people going out and about, with everyone saving £9.1bn in August, compared to the amount they would normally save before the pandemic. But savers were rewarded with savings rates once again falling to historic lows.
With no signs of the Bank of England raising interest rates and inflation remaining high and likely to rise further in the coming months, eager savers are being exploited by both countries.
“A mini-interest rate war in parts of the savings market has led to improved best purchase rates. This means there are several options for those who want to shop around. And with 0.01% interest “Anything is better than having money keep disappearing into your current account in order to earn more. At that rate you would need to save £100,000 just to get £10 back each year in interest.” I say.
Credit card borrowing, personal loans, and auto loans rose slightly, but remain at about one-third of pre-pandemic levels.
