Mortgage approvals have returned to pre-pandemic levels as lending fell sharply, according to the latest figures from the Bank of England (BoE).
Mortgage purchase approvals fell to 67,200, down from 71,900 in September, according to the latest Money and Credit statistics from the central bank.
Approvals for remortgaging increased slightly to 41,600 – someway below the 12-month average to February 2020 of 49,100, but still the highest since March 2020 (42,700).
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “It’s unsurprising that activity in October has been more subdued than previous months, with the end of the Stamp Duty holiday and the approach of the traditional quiet period for the purchase market. These figures are a good inidicator of where the market will likely find its ‘new normal’ in the New Year.
“While things are getting quieter on the purchase side of the market, there’s still a very lively remortgage market that offers plenty of opportunities for brokers.
“With borrowers looking to secure a low mortgage rate before a potential base rate rise in the coming months, brokers can really add value for their clients and help them to take advantage of the attractive deals available.”
Lisa Martin, development director at TMA, added: “The fall in mortgage lending in October is not altogether unexpected. September saw the highest levels of lending since June as buyers rushed to complete their home purchases before the final Stamp Duty holiday deadline.
“Now, the focus is shifting to remortgage activity as seen by the rise in remortgaging approvals throughout October. With a record number of mortgages set to mature and a possible interest rate rise on the horizon, we will likely continue to see more borrowers take advantage of the low rates that are still on offer in the market at this time.”
