The number of mortgage approvals in Britain rose in July to their highest level in 17 months according to the British Bankers’ Association, spelling good news for the housing sector.

Richard Woolhouse, chief economist at the BBA, said:

“Savvy homeowners are snapping up competitive deals before an expected increase in interest rates.”

British banks approved 46,033 mortgages for house purchases, the highest number since February 2014. That was up from 44,802 in June and up 11 percent from a year ago.

The number of mortgages approved for remortgaging jumped 29 percent and was its highest in four years.

Turmoil in China has invited questions into whether the Bank of England may push back a rate hike. However, this positive news from the housing sector may well put the hike on track.

 

Source: Reuters