UK lenders approved most mortgages in six months in July

LONDON (Reuters) -British lenders approved the most mortgages in July since January, according to Bank of England data published on Monday that added to signs of a stabilisation in the housing market after volatility caused by the end of a tax break.

Banks and building societies signed off on 65,352 mortgages during the month, more than the median forecast of 64,400 in a Reuters poll of economists.

The housing market dipped immediately after the expiry of a tax break for some homebuyers in April and appears to have largely settled since then.

However, figures published earlier on Monday by the Nationwide Building Society showed an unexpected fall in house prices in August as buyers struggled to afford high valuations.

The BoE data also showed stronger-than-expected increases in mortgage and consumer borrowing during July.

Consumer borrowing rose by 7.0% in the 12 months to July, the biggest such increase since the 12 months to October 2024.

(Writing by William Schomberg; editing by Sarah Young)