Mortgage approvals in Britain hit a five-year low in October with just 83,000 home loans approved in a month, according to the data revealed by the Bank of England. The housing market has been steadily cooling down as the number of mortgage approvals has been declining since May.

 

Net mortgage lending in October dropped to £7.519, the lowest figure since March 2003.

 

The Bank of England raised interest rates five times last year contributing to a drop in consumer credit growth. Consumer borrowing dropped to £1.5 billion in October as compared to £1.5 billion in September.

 

The slower mortgage activity and decrease in consumer spending backs the forecast that the Bank of England will keep the interest rates unchanged at 4.75% until next year.