Mortgage Approvals At Lowest Levels In Two Years
Mortgage approvals fell to their lowest level in two years as interest rate rises put off buyers, new Bank of England figures suggest.
They slumped to just over 46,000 in November, down from under 58,000 in October, according to the central bank.
One analyst said some home-buyers were put off by a surge in mortgage rates sparked by the mini-budget turmoil.
Economists also predicted house prices, which were already down, could fall by up to 10% across the year.
The latest figures from the Bank of England show that people were also borrowing more on credit cards as cost of living pressures continue to weigh on household budgets.
People also saved more, suggesting they are anticipating tough times ahead, one expert said.
The collapse in mortgage approvals was sparked by the mini-budget plan unveiled by previous prime minister Liz Truss and chancellor Kwasi Kwarteng in September, according to Andrew Wishart, an economist at Capital Economics.
The plan, which promised billions of pounds of tax cuts without explaining how they would be paid for, led to turmoil on the markets, and mortgage rates rising.
Mortgages had already been getting more expensive due to interest rate rises brought in by the Bank of England as it sought to tame the soaring pace of price rises.