U.K. mortgage approvals hit 6-month high in October, consumer credit highest in 11 months

Mortgage approvals in the United Kingdom hit 6-month high during October, while consumer credit remained highest in the past 11 months, cementing a strong consumer demand and improving wants for houses amid prevailing tension and uncertainties over June’s Brexit vote.

U.K. mortgage approvals increased to 67,518 in October from 63,594 in September, data released by the Bank of England showed Tuesday. Analysts in a Reuters poll had forecasted 65,000 mortgage approvals were made in October.

Total lending to individuals increased by GBP 4.9 billion in October compared to GBP 4.7 billion in September. Within total lending, secured lending rose GBP 3.3 billion, the same increase as seen in September but slightly bigger than the expected GBP 3.2 billion.

Consumer credit increased by GBP 1.6 billion or 0.9 percent in October from September. Credit was forecast to grow GBP 1.5 billion. M4 money supply growth accelerated to 6.6 percent from 6.2 percent in September. Month-on-month, M4 gained 1.1 percent, reversing a 0.4 percent fall a month ago.

Further, the BoE said business lending increased for the second month in a row, rising 3.15 billion pounds from 1.0 billion in September and marking the largest upturn since February. Mortgage lending in cash terms increased 3.28 billion pounds, up slightly from September's 3.26 billion pound rise.

Meanwhile, the GBP/USD has formed a bullish pattern at 1.24, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bullish at 103.90 (above the +75 benchmark for bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex