INSTANT VIEW - Mortgage approvals tick up in Sept

LONDON (Reuters) - Mortgage approvals for house purchase inched up in September for the first time in more than a year, after hitting a record low hit in August, the Bank of England said on Wednesday.

Mortgage lending last month was more than twice than forecast but that followed a downward revision to August which showed the first net repayment since the series began in 1993.

The figures are unlikely to alter expectations that the Bank will cut interest rates next month, following a 50 basis point cut to 4.5 percent this month.

ANALYST COMMENTS

VICKY REDWOOD, CAPITAL ECONOMICS

"September's household borrowing figures provide further evidence that housing activity has found a floor, but at rock bottom levels. The number of mortgage approvals rose marginally from 32,000 to 33,000 and have therefore hovered at just above 30k for 3 months now. And at this level, they are consistent with annual house price inflation of between -20 percent and -25 percent, compared to the current rate of -13 percent or so.

"Admittedly, the recent pick-up in new buyer enquiries offers some hope of a recovery. But with credit still restricted, potential buyers will find it hard to get a mortgage. Meanwhile, lenders have not passed on October's rate cut in full to new mortgage rates. And surely buyers will want to wait until house prices appear to be reaching a floor.

"We still think that house prices have at least another 20-25 percent to fall. Meanwhile, the weak 0.3 billion pound rise in consumer credit in September suggests that tighter credit conditions and/or weaker consumer spending are finally weighing on unsecured borrowing."

GEORGE BUCKELY, DEUTSCHE BANK