UK mortgage approvals rise despite surge in borrowing rates

Surprise jump in demand for home loans as borrowers scramble' to get ahead of interest rate increases

• Analysis - mortgage rates show sign of easing

Mortgage approvals in the UK rose to their highest level since October 2022 last month amid signs of a scramble to secure home loan deals before an expected surge in interest rates.

New data from the Bank of England revealed a surprise increase in demand for mortgages, with the increase from 51,100 in May to 54,700 in June confounding expectations in the financial markets of a fall to 49,000.