Mortgage lending falling as interest rate rises bite

Mortgage lending appears to be falling back as recent statistics show total household borrowing drop...

Mortgage lending appears to be falling back as recent statistics show total household borrowing dropped in July to its lowest level since December 2003, according to Gerrards. The movements imply the Bank of England's interest rate hikes are starting to take effect on the UK economy, the investment group believes. Simon Rubinsohn, chief economist at Gerrards, said: "The MPC is likely to be reasonably satisfied with these numbers and will almost certainly sit on its hands for at least the next two meetings." Significantly, he noted, the number of loans approved for house purchases droppe...