UK Mortgage Approvals Fall to Lowest Level Since Late 2023 as Diesel Nears £2 a Litre

The number of mortgages approved by UK lenders fell to its lowest level since the end of 2023, according to new Bank of England data reported by the Guardian.

Just 54,918 new home loans were approved in August on a seasonally adjusted basis, the data showed, as rising borrowing costs deterred potential buyers, according to the report.

The average two-year fixed residential mortgage rate stood at 5.93%, up from 5.91% the previous working day, the Guardian reported, while the average five-year fixed rate rose to 5.94% from 5.93%.

Separately, the report said diesel prices in the UK were nearing a new record high of close to £2 a litre, adding further pressure on household and business budgets already strained by elevated borrowing costs.

The Guardian's report did not specify the factors driving the rise in diesel prices or provide a timeline for when mortgage approvals or fuel costs might ease.