“December’s slowdown in mortgage approvals reflects the affordability pressures many households faced at a particularly expensive time of year. The rise in remortgaging suggests others focused on managing existing commitments rather than taking on new borrowing amid elevated living costs and festive spending.
“The drop in consumer borrowing underlines how cautious households remain, with confidence still fragile. Unsurprisingly, many households chose to delay major financial decisions whilst uncertainty over future household costs persists.
“Looking ahead, lenders will need to remain attuned to household finances, balancing demand where affordability allows, with early engagement and flexibility for customers. This is especially important as households absorb the cost of an expensive festive period and face ongoing budget challenges in an uncertain geopolitical environment.”
