UK mortgage data points to downturn

The Bank of England has today issued funding data regarding the UK mortgage market showing that mortgage approvals were down from 49,461 in May to 47,643 in June, well below initial forecasts of 49,000. Net mortgage lending growth eased to £665 million in June from £838 million in May, again well below analyst forecasts of £1 billion. There was also the revelation that UK consumers have repaid just short of £100 million of unsecured credit.

All in all, this report issued by the Bank of England today would suggest that UK consumers and UK house buyers are becoming more and more cautious regarding the UK economy. If this is the case, then we can hardly expect consumers to support both the retail market and the property market in the short to medium term without further assistance from the UK government. When you consider the UK government is currently in the process of slashing the public-sector budget and increasing taxes, then any financial assistance in the short term would appear to be a forlorn hope.

Unfortunately, the dark clouds are now beginning to gather over the UK economy and in all honesty there is very little positive news on the horizon.