The Bank of England has reported that net mortgage approvals for house purchases increased to 65,600 in September, the highest level since August 2022.
Meanwhile, approvals for remortgaging increased by 3,100 to 30,800.
Net borrowing of mortgage debt by individuals fell by £0.3 billion, to £2.5 billion in September.
In addition, net consumer credit borrowing by individuals was £1.2 billion in September, down from £1.4 billion in the previous month.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Mortgage approvals for new purchases rose again, which bodes well for a strong final quarter to the year for the housing market. Remortgaging has also picked up, suggesting a growing number of borrowers are drawn to ‘best buy’ rates offered by other lenders, rather than sticking with their existing provider as lenders compete for business.
“The effective interest rate paid on new mortgages decreased to 4.76 per cent as lower pricing is reflected in the official figures and we expect this trend to continue in coming months.”
John Phillips, CEO of Spicerhaart and Just Mortgages, added: “September’s increase in net mortgage approvals to 65,600 marks the highest level in two years, since August 2022, demonstrating clear signs of renewed vigour in the housing market. Alongside this, the rise in remortgage approvals to 30,800 shows that both buyers and existing homeowners are eager to engage with the market again. A potential interest rate cut in November would add further tailwinds to this positive momentum, making homeownership and refinancing more attractive.
“With the Budget announcement tomorrow, we hope the government fans these flames instead of throwing cold water over what is clearly a positive step forward. Now is the time for targeted support that sustains this upward trend, offering stability and opportunity to those looking to enter or remain in the housing market.”
