UK mortgage approvals hit 65,945 in April, 15 month high

The number of mortgages approved for UK home buyers rose unexpectedly in April, reaching its highest level in 15 months according to official data. The Bank of England reported Tuesday that lenders approved 65,945 home loans during the month, an increase from 63,979 in March and the highest figure since January of last year. The figure surpassed economists' expectations of approximately 62,000 approvals.

This increase in mortgage approvals suggests a degree of resilience in the housing market despite higher borrowing costs and economic uncertainty stemming from the conflict in Iran. The average interest rate on newly drawn mortgages rose to 4.08 percent in April from 4.03 percent the previous month. Some analysts suggested the rise in approvals may reflect buyers rushing to secure loans ahead of anticipated further increases in interest rates, which have been pressured by global energy supply disruptions linked to the Middle East conflict.

However, other data points to potential weakness beneath the headline figure. Net borrowing of mortgage debt, which reflects completed house purchases, fell sharply to 4.4 billion pounds in April from 6.8 billion in March, marking the lowest...