Adam Oldfield, chief growth officer, says:

“The effect of rising interest rates and inflation have now begun to show in the latest figures from the Bank of England. The fact that the number of approvals in November dropped is no surprise really. We have been expecting to see a tightening in the market ever since the turmoil in government caused a degree of uncertainty we haven’t seen since the beginning of the pandemic.

“It is likely to be a quiet start to the new year, but it is also the time when people historically dust themselves off after Christmas and the market begins to pick up. It will be interesting to see just how much additional credit card borrowing there was in December. Did people throw caution to the wind and simply pay for Christmas this way? If so, this will have an effect on the way lenders look at their criteria and affordability checks if borrowers have added to their debt without fully preparing for the payback down the line. It may also put pressure on existing borrowers and lenders will need to be fully prepared to ensure exposed borrowers are identified, and assisted, quickly.”