U.K. mortgage approvals rise highest in 5 months, consumer credit at decade-high

Mortgage approvals in the United Kingdom rose to its highest levels in near five months, while the country’s consumer credit hit a decade high during the period of October.

The number of mortgages approved for house purchases rose to 40,851 in October from 38,690 in September, data released by the British Bankers’ Association (BBA) showed Thursday. This was the highest since May, when mortgages totaled 41,702. Mortgages were expected to rise to 38,975.

Further, consumer credit increased at an annual rate of more than 7 percent in October, marking the strongest growth since November 2006, data showed. British banks approved 40,851 mortgages for house purchases last month, up from 38,690 in September and the biggest number since May.

Further, gross mortgage borrowing of GBP 12.2 billion in October was 4 percent lower than in same period last year. Consumer credit grew 7 percent reflecting strong retail sales growth in October supported in the case of personal loans by favorable interest rates.

Also, borrowing by non-financial companies increased by GBP 1.4 billion in October, however, the borrowing was largely short term and will probably unwind next month. Net credit card lending rose in October by 220 million pounds after a 179 million pound increase in September.

Meanwhile, the GBP/USD currency pair rose 0.31 percent, following the release of the data, currently trading at 1.24, while at 11:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bullish at 154.81 (higher than the +75 benchmark for bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex