UK mortgage approvals in January reached 66.19K, slightly above the expected 65.65K. The prior figure was revised down from 66.53K to 66.51K.
Net consumer credit stood at £1.7 billion, up from a previous £1.0 billion, which was adjusted to £1.1 billion. Additionally, net borrowing of mortgage debt rose by £0.9 billion, bringing the total to £4.2 billion for January, after a rise of £1.1 billion in the previous month. The annual growth rate of mortgage lending increased to 1.8%, continuing its upward trend since April of the prior year.
Mortgage Approval Trends
Mortgage approvals edged ahead of forecasts, hinting at steady demand for housing loans. Though the difference is minor, it suggests a level of resilience despite broader economic concerns. A slight downward revision in the prior month’s figure does little to shift the broader trend, as approvals remain elevated when viewed against the last several months.
Consumer credit expanded noticeably, with borrowing surpassing December’s tally after its own small revision upward. The month’s increase follows a pattern of rising household debt, pointing to greater consumer willingness to take on financial obligations. Whether this stems from confidence in income stability or simply necessity in the face of rising costs is open to interpretation. Either way, spending behaviour reflects a shift in borrowing appetite, which will have wider financial implications.
An increase in mortgage debt aligns with growing housing activity, reinforcing the data from approvals. The rise, while not extreme, shows that buyers continue to navigate the market despite concerns about affordability and interest rate expectations. The ongoing climb in annual mortgage lending growth suggests financing conditions remain accommodating enough to support borrowing. With lending momentum strengthening since last spring, the trend indicates a housing credit environment that is loosening rather than tightening.
Economic Implications
What is clear from these figures is that borrowing demand has held firm into the start of the year. That holds relevance beyond just the housing sector, as it feeds into wider economic conditions. With inflation pressures and interest rate moves still shaping decisions, these trends provide insight into how markets may respond in the coming weeks.
