"The continuing economic uncertainties both in the UK and in the euro area are having a dampening effect on activity within firms and households"
- BBA statistics director, David Dooks
The total number of new mortgages approved in the U.K. rose more than expected last month, hit by the global slowdown, the British Banker's Association said Tuesday. Mortgage approvals, which are a leading indicator of housing market activity, jumped 1.6 per cent to 31,175 in September, up from 30,683 in the previous month.
"The continuing economic uncertainties both in the UK and in the euro area are having a dampening effect on activity within firms and households," said BBA statistics director, David Dooks.
"Households are reducing borrowing requirements and have no appetite to take on more/new debt. Where they can, individuals are putting money aside for household expenditure. Firms are holding back on borrowing for investment until trade prospects improve."
The FTSE 100 Index lost 1.44 per cent to 5,797.91. The broader FTSE All-Share Index inched lower 1.40 per cent to 3,029.81.
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