UK mortgage approvals fall to five-month low as rate hikes hit demand

July is traditionally busy month for home buying but surge in interest rates has begun to take its toll'

The number of mortgage approvals fell to its lowest level in five months in July, amid fresh evidence of the impact of the sharp increase in borrowing costs on the housing market and the wider economy.

Bank of England figures showed the number of new loans approved but not yet completed decreased from 54,600 in June to 49,400 in July - a drop of 10%.