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UK Mortgage Approvals Fall to Thirty Two Month Low Amid Rising Interest Rates

Published 1d ago · Updated 1h ago

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Rising borrowing costs driven by conflict in Iran have pushed UK mortgage demand to a thirty-two month low.

UK mortgage demand fell to its lowest level in thirty-two months during August as geopolitical tensions surrounding the war in Iran drove up borrowing costs. Average five-year fixed mortgage rates climbed to their highest point since October two thousand twenty-three, according to figures from Moneyfacts. Meanwhile, Bank of England data revealed that mortgage approvals for new home purchases dropped to fifty-four thousand nine00 eighteen in August.

Average five-year fixed mortgage interest rates reached 5.94%.
Mortgage approvals for new home purchases fell to their lowest monthly total since December 2023.
Data regarding mortgage approvals was released by the Bank of England on Tuesday.

Written from 2 of 3 outlets — 1 has since joined this story.

By the numbers

5.94%average five-year fixed mortgage interest rate

54,918mortgages approved for new home purchases

Why it matters

Fluctuations in mortgage rates and borrowing costs directly impact housing market activity and prospective homebuyer affordability across the United Kingdom.

What outlets agree on

Mortgage demand and approvals in the UK decreased significantly in August due to surging borrowing costs linked to geopolitical tensions.

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In this story

United KingdomBank of EnglandHousingInterest ratesMoneyfactsBankingIran

Covered by 3 outlets

67% of the sources are Left

67%33%

Lean ratings via Ad Fontes Media, AllSides

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