A row of characteristic English cottages in Cambridge, UK

LONDON (Alliance News) – UK mortgage approvals increased to a 2-year high in January, the Bank of England reported Monday.

The number of mortgages approved in January rose to 74,581, the biggest since January 2014, from 71,335 in December.

Total lending to individuals grew GBP 5.3 billion versus a GBP 4.3 billion rise in December. Within total, lending secured on dwellings rose GBP 3.7 billion, in line with expectations, after rising GBP 3.2 billion a month ago.

Consumer credit increased at a faster pace of GBP 1.6 billion following a GBP 1.1 billion increase in December. Economists had forecast a GBP 1.4 billion increase.

Monetary aggregate M4 growth improved to 0.8% from 0.2%. On a monthly basis, M4 remained flat compared to a 0.2% fall in December.

January’s UK money and credit figures showed a leap in mortgage approvals suggesting that the mortgage market is heating up ahead of the stamp duty changes for buy-to-let investors which come into force in April this year, Ruth Miller at Capital Economics, said.

Copyright RTT News/dpa-AFX

Newsletter Signup

Want to recieve regular updates from us, sign up to our newsletter to be in the know.