UK mortgage approvals increased to a six-month high in August, the Bank of England reported Monday.
The number of mortgages approved in August rose unexpectedly to 66,440 from 65,156 in July. The expected level was 64,500.
Looking ahead, with house prices set to stay very high relative to incomes and interest rates rising, outlook for mortgage approvals is subdued, Hansen Lu, a property economist at Capital Economics, said.
Secured lending increased GBP 2.9 billion versus GBP 3 billion rise in July, BoE said.
At the same time, the increase in consumer credit accelerated to GBP 1.1 billion from GBP 0.8 billion a month ago. The annual rate came in at 8.1 percent, the lowest since August 2015.
Further, data showed that loans to non-financial businesses climbed GBP 1.9 billion but smaller than the GBP 2.7 billion rise seen in July.