Mortgage demand steady despite rate rise…


Monopoly pieces on cash

A rise in the Bank rate in August had little effect on the number of mortgages advanced during the month, new figures show.

The Bank of England increased its benchmark interest rate for only the second time in a decade, up from 0.5% to 0.75%.

There were 38,000 new mortgages completed by home movers during August, some 2.3% down on the same month a year earlier, according to lenders’ trade body UK Finance.

This suggests some may have locked in a fixed rate deal in the build up to the widely predicted Bank rate rise.

The number of loans advanced to first-time buyers was up by 2% to 35,500 in August. On average, these borrowers were aged 30 and had a gross household income of £42,000.