UK mortgage approvals dip in July as housing demand softens, consumer credit holds up

• UK July mortgage approvals 56.05k vs 59.50k expected
• Prior 58.20k; revised to 58.21k
• UK July net consumer credit £2.0 billion vs £1.8 billion expected
• Prior £1.81 billion; revised to £1.86 billion

Approvals for mortgages in July fell to 56,100, a figure that sits well under the prior six-month average of 60,800.

On top of that, individuals' net borrowing of mortgage debt dropped to £4.3 billion in July, compared with £7.7 billion in June. That amount also now trails the six-month average of £5.3 billion.

Hence, mortgage borrowing has slowed considerably as the market loses some of its earlier impetus.

In contrast, individuals' net consumer credit borrowing edged up to £2.0 billion in July. The data reveal that consumers did not add much more to credit cards (£0.9 billion). Instead, the increase came from areas such as car finance and personal loans, which totalled £1.1 billion.

Overall, the figures indicate some weakening in housing demand while consumer borrowing remains relatively sturdy. To put it another way, UK households grew more cautious about taking out mortgages but kept borrowing for other types of spending.