Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Bank of England Reports Sharp Drop in Mortgage Borrowing for July

Mortgage borrowing by individuals in the UK fell sharply in July, according to the latest monthly banking statistics from the Bank of England. Net borrowing of mortgage debt dropped to £4.3 billion in July, down from £7.7 billion in June, and below the previous six-month average of £5.3 billion.

Net mortgage approvals for house purchases also declined, falling to 56,100 in July from 58,200 in June. This figure was below the six-month average of around 60,800. In contrast, approvals for remortgaging increased slightly to 34,500 from 34,100, not including product transfers.

Secured gross lending decreased to £25.9 billion in July, compared to £26.9 billion in June, and was slightly below the six-month average of £26.4 billion. Mortgage repayments increased marginally to £21.3 billion, up from £21.2 billion in June, and remained above the six-month average of £20.8 billion.

The annual growth rate for net mortgage lending was unchanged at 3.6%. The effective interest rate on newly drawn mortgages rose to 4.45% in July, up from 4.35% in June. The rate on the outstanding stock of mortgages also increased, reaching 3.97% from 3.96%.

These figures may be relevant for letting agents and inventory clerks monitoring trends in the UK property market, as changes in mortgage borrowing and approvals can impact demand for rental properties and property transactions.