Net borrowing of mortgage debt by individuals fell by £0.3bn, to £2.5bn in September, data from the Bank of England’s latest Money and Credit report has revealed.
Net mortgage approvals for house purchases rose to 65,600 in September, the highest level since August 2022 at 72,000.
Similarly, approvals for remortgaging increased by 3,100 to 30,800.
In addition, net consumer credit borrowing by individuals was £1.2bn in September, down from £1.4bn in the previous month.
Reaction:
Ryan Davies, strategy director at Bluestone Mortgages:
“Today’s uptick in mortgage approvals is proof that borrowers took advantage of the lower rates we’ve seen in recent months.
“However, with looming uncertainty around the Autumn Budget and lenders starting to increase their rates again, we’re likely to see a drop-off in volumes in the coming weeks.
“For those worried about affordability in the current environment, speaking with a mortgage broker is a sensible first step.
“These professionals can guide you through the complexities of the market and help find a mortgage to suit your unique circumstances.”
Nathan Emerson, CEO of Propertymark:
“Considering the economic headwinds of the last few years, the housing market has shown great resilience, delivering a positive trajectory of growth throughout the duration of the year to date.
“Overall, the wider economy stands in a much healthier position than a year back, with inflation now below the initially targeted range of 2% and strong hints we may see the Bank of England potentially nudge down the base rate when the Monetary Policy Committee meet next week.
“It is important, however, to consider what impact the Budget may have on the housing market, and with strong rumours we may see alterations to Stamp Duty thresholds, which could directly affect affordability, it is a case of all eyes on the UK Government on Wednesday afternoon.”
Stephanie Daley, director of partnerships at mortgage advisor, Alexander Hall:
“Despite the air of uncertainty caused by the looming Autumn Statement, the UK property market has continued to benefit from a robust level of mortgage market activity, recording a fourth consecutive month of positive growth where approvals are concerned.
“This momentum is only likely to build further once the dust has settled on tomorrow’s Budget, as both buyers and lenders will have a clearer view of where they stand within the market.
“The outlook remains a very positive one for the remainder of the year and we expect that the mortgage sector will continue to act as the catalyst that drives the recovery of the wider market forward as we head towards 2025.”
Jonathan Samuels, CEO of specialist lender Octane Capital:
“Mortgage approvals are the fuel that drives the wider machine of the UK property market and, as it stands, it’s benefitting from a full tank, having been running on empty for much of the last two years.
“Buyers are returning with confidence and whilst they may pause for breath ahead of tomorrow’s Autumn Statement, we expect to see 2024 finish on the front foot.”
Colby Short, co-founder and CEO of GetAgent.co.uk:
“Mortgage approvals have sat consistently above the 60,0000 threshold now since February of this year and this very much demonstrates a market that has found its feet following what was a very difficult period for the mortgage sector and the nation’s homebuyers.
“With another interest rate cut, at least, expected before the year is out, we’re likely to see more homebuyers entering the market ahead of the Christmas break, in preparation of hitting the ground running in 2025.”
