Karim Haji, Global and UK Head of Financial Services at KPMG, comments on the Bank of England’s Money and Credit statistical release (March):
“The uptick in approvals for house purchases and remortgaging is surprising given the surge in rates during March. This may point to some resilience in the market, but overall affordability remains under pressure.
“Meanwhile, the dip in consumer borrowing suggests households may be tightening their belts and taking a more cautious approach to managing their finances.
“The outlook remains challenging. While the energy price cap might shield households until July, the ongoing Iran conflict is intensifying already elevated living costs, which will impact housing and borrowing activity for the foreseeable future.
“Lenders should engage early with customers who are more exposed to rising costs and payment pressures as we move further into the year.”
