“May’s uptick in mortgage approvals bucks the downward trend we’ve seen throughout the year so far. The gradual easing of interest rates could be helping to boost confidence and demand amongst mortgage borrowers.
“The cost of living remains high, but a drop in consumer borrowing in May signals that rising incomes are starting to feed through to the cost of day-to-day expenses.
“Borrowers may also be awaiting further movement on the Bank of England’s base rate before deciding to take out more credit although falling mortgage rates may help increase confidence and appetite.
“Default rates remain high, despite the interest rate cut last month, and it is critical that lenders remain ready to support customers that are struggling to pay their bills.
“With the economic outlook remaining uncertain, lenders will need to be alive to the financial struggles of their customers and be ready to step in to support them both now and in the months ahead.”
-ENDS-
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Notes to Editors:
About KPMG
KPMG LLP, a UK limited liability partnership, operates across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.99 billion in the year ended 30 September 2024.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.