U.K. mortgage approvals post surprise fall in November, lower than market consensus

Mortgage approvals in the United Kingdom posted an unexpected fall during the month of November, remaining lower than what markets had initially anticipated.

U.K. mortgage approvals declined for the first time in three months, defying expectations for further increase, figures from the British Bankers' Association, or BBA, revealed Wednesday. The number of loans approved for house purchase fell to 40,659 from a revised 40,835 in October. Economists had forecast a higher figure of 41,500.

On a year-on-year basis, house purchase mortgage approvals dropped 9 percent in November. Re-mortgaging approvals surged 14 percent year-on-year in November to 26,975. Gross mortgage borrowing declined 5 percent annually to GBP 12.2 billion, while net borrowing rose 2.4 percent.

The annual growth in consumer credit declined to 6.4 percent from 7.2 percent, despite strong retail sales. Personal deposits grew 4.8 percent year-on-year, same as in the previous month.

"The reduction in interest rates in August may have boosted remortgaging approvals, with consumers looking to take advantage of the current economic conditions and lock-in lower interest rates," said Rebecca Harding, Chief Economist, BBA.

Meanwhile, GBP/USD traded at 1.22, down -0.26 percent, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bearish at -102.02 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex