U.K. mortgage approvals hit lowest in 18 months

The number of new mortgages approved in the U.K. dropped in July to the lowest level in more than a year, a sign that the housing market cooled a little in the immediate aftermath of the U.K.’s decision to leave the European Union.

The number of new home loans approved by banks in July fell to 60,912, the Bank of England said Tuesday. That’s fewer approvals than the 64,152 in June and the fewest since January 2015.

Lending to consumers, net of repayments, fell to 3.8 billion pounds ($5 billion) from GBP5.1 billion a month earlier. The decline was driven by falls both in mortgage lending and unsecured borrowing.

Business lending rose. Nonfinanical firms borrowed GBP2.2 billion from banks in July, up from GBP1.1 billion in June.

Tuesday’s figures add to a mixed picture on the economy since Britons chose to leave the EU in a referendum June 23. Some surveys suggested the economy slowed in July, although others suggested activity has since recovered.

The BOE this month cut its benchmark interest rate to a new low and lined up cheap funding for banks to ensure households and businesses have access to plentiful credit.

Also Tuesday, BOE data showed sales of U.K. government bonds by foreign investors exceeded purchases in July for the first time since February. Foreigners sold a net GBP4.4 billion of bonds, after making purchases of GBP8.1 billion in June.

Source: MarketWatch