Mortgage approvals drop as higher interest rates start to bite

The latest Bank of England figures show a continued increase in mortgage lending since the Spring Coronavirus lockdown.

Net borrowing of mortgage debt by individuals increased to £7.4bn in May from £4.2bn in April, according to the Bank of England's Money & Credit data. This is above the pre-pandemic average of £4.

“With the market as competitive as it is, motivated buyers can ill afford to reduce budgets, despite rises to mortgage rates and household bills," says Savills.