UK demand for mortgages slumps as interest rates deter buyers

Bank of England figures also reveal many households are dipping into savings, rather than using credit cards

Demand for mortgages has collapsed to its lowest level since the depths of the 2020 lockdown as potential homebuyers are deterred by rising interest rates, the latest official figures show.

The Bank of England said the number of home loan approvals had dropped to 35,600 in December from 46,200 in November – the fourth monthly fall in a row.