UK mortgage lenders authorized almost 66,000 house loans in September, the very best stage since December 2024, in line with new Financial institution of England figures.
The Financial institution’s newest Cash and Credit score report confirmed 65,900 mortgage approvals for property purchases — up by 1,000 from August — whereas approvals for remortgaging with a unique lender slipped by 600 to 37,200.
Internet mortgage borrowing rose sharply to £5.5bn, up from £4.3bn the earlier month, marking the strongest rise since March, when borrowing hit £13.2bn. The annual development price for mortgage lending additionally edged as much as 3.2% from 3%, its highest in nearly three years.
The figures recommend renewed exercise within the housing market after months of subdued demand, as falling inflation and expectations of future price cuts start to raise purchaser confidence.
Trade response:
Emily Williams, director of analysis at Savills: “The lending information from the Financial institution of England is encouraging for the mainstream housing market within the run as much as the Price range. Regardless of the uncertainty brought on by rumours of adjustments to property taxation since August, Q3 noticed the very best stage of mortgage approvals for home purchases to date this yr and was additionally 2% increased than the identical interval final yr.
“Exercise has been supported by the continued gradual eased in the price of debt, with common charges for newly agreed loans at their lowest price since early 2023. This sample ought to proceed into 2026, with markets anticipating one other lower to the bottom price within the coming months. A lot will even rely upon how monetary markets reply to the Chancellor’s Price range on the finish of November. Nonetheless, we count on any bulletins to have a extra pronounced affect on prime values and transactions than on the broader mainstream market.
Richard Donnell, government director at Zoopla: “Demand for mortgages to purchase properties continues to extend however at a slowing price because the rolling whole during the last 12 months begins to stage off as housing transactions attain near their 10 yr common of 1.2m. Whereas Price range hypothesis has hit demand and gross sales for properties over £500,000, the remainder of the market is much less affected which explains the continued demand for mortgages.”
Nathan Emerson, CEO of Propertymark: “An uplift within the variety of mortgage approvals is encouraging to witness. Many cogs want to show harmoniously collectively in relation to shopper confidence and affordability, and regardless of challenges inside the wider economic system, it’s constructive to see folks with the ability to take their subsequent step onto the housing ladder with higher ease.
“There are nonetheless considerations which have to be acknowledged, nonetheless, akin to inflation sitting near double what the Financial institution of England have focused and the affect this may have concerning base price choices. Regardless of this, we stay in a a lot stronger place than we began the yr at, when the bottom price stood a lot increased at 4.75%.”
Simon Gammon, managing associate, Knight Frank Finance: “Mortgage approvals edged down barely in September, however the general image stays considered one of stability, with month-to-month strikes of fewer than 1,000 since June. We count on a extra noticeable slowdown subsequent month because the November Price range approaches and hypothesis builds round potential will increase in private and property taxation. Households are likely to undertake a “wait and see” strategy after they lack readability on future outgoings.
“On the identical time, 4 lenders decreased mortgage charges final week following constructive inflation information, underlining how eager they’re to stimulate exercise in what stays a subdued market.
“What occurs past November is much less clear. A lot will rely upon whether or not the federal government opts for a broad-based reform of property taxation. There’s a clear alternative to assist each housing market exercise and financial development by decreasing transaction prices.”
Richard Merrett, managing director of Alexander Corridor: “A renewed strengthening in mortgage approvals reinforces the constructive market sentiment and consistency that we’ve seen throughout the mortgage sector all through 2025. Regardless of broader financial uncertainty, debtors proceed to point out confidence, supported by extra accessible mortgage merchandise and regular lender urge for food.
“There’s, in fact, an opportunity that we might see mortgage market exercise cut back within the quick time period because the Autumn Price range approaches, with some homebuyers taking a quick pause to see what the Authorities has up its sleeve.
“Nonetheless, any hesitation can be momentary and, with inflation now holding regular at 3.8% for the third month operating, there’s rising optimism {that a} base price lower might nonetheless arrive earlier than Christmas. If that’s the case, it could assist gasoline renewed momentum and set the stage for a robust begin to 2026.”
