In September, UK mortgage approvals reached the highest point since August 2022, indicating a robust property market.
- The Bank of England reported a growth in mortgage approvals for the fourth consecutive month.
- Net mortgage approvals hit 65,600, revealing increased buyer confidence in the market.
- Remortgaging approvals also rose, with a notable increase of 3,100, amid competitive loan offers.
- Despite these trends, overall mortgage borrowing decreased by £0.3 billion, indicating caution.
In a notable resurgence, mortgage approvals in the UK surged in September, marking the highest figures since August 2022. The Bank of England disclosed that these approvals have been climbing consistently over the last four months, reflecting a significant rebound in the housing market.
Net mortgage approvals for house purchases rose to an impressive 65,600, illustrating a renewed sense of confidence among buyers. This uptick in activity suggests that prospective homeowners are increasingly eager to proceed with their purchases, likely influenced by more favourable loan conditions.
Approvals for remortgaging with a different lender saw an increase of 3,100, reaching a total of 30,800. This rise hints at borrowers seeking out better mortgage deals, driven by the competitive rates being offered by some lenders.
Despite the positive momentum in mortgage approvals, net borrowing of mortgage debt by individuals saw a decline of £0.3 billion, standing at £2.5 billion in September. This decrease followed three months of consecutive increases and may indicate a cautious approach among borrowers amid economic uncertainties.
Additionally, gross lending fell to £19.3 billion, down from £19.7 billion in August, while repayments also decreased by £0.6 billion to £17.6 billion over the same period. The observed reduction in gross lending and repayments may further underline a sense of prudence wthin the market.
Interestingly, the average interest rate on newly drawn mortgages decreased by 8 basis points to 4.76% in September. According to Ryan Davies, this reduction in rates has encouraged borrowing, though he warns of potential declines as the Autumn Budget approaches.
These figures indicate a lively mortgage market in the UK, though caution persists due to economic factors.
