Householders make rare net mortgage repayment

Households made a net repayment on their mortgages in July for only the second time in the past decade. The figures from the Bank of England show households making a net repayment of £1.4bn in July, while economists had been expecting a £3.1bn rise in mortgage borrowing. The market has cooled following a surge in borrowing in recent months as buyers took advantage of the temporary stamp duty relief. Mortgage advances fell from £43.8bn in June to £16.5bn, the lowest level since June 2020. As a result, households repaid mortgage debt in aggregate for the first time since April last year, when the market was in lockdown, and only the second time in the past decade. Mortgage approvals fell from 80,272 in June to 75,152 in July, the lowest number since July 2020, but still well above the pre-pandemic average of 65,000. The Times (£) The Guardian