Net mortgage borrowing grew from £3.6bn in October 2022 to £4.4bn in November, detail Bank of England (BoE) statistics.

At the same time, gross lending fell, from £27.7bn to £25.7bn across the same time frame.

As mentioned in its Bankstats report produced earlier today, the BoE also says that house purchase approvals dropped to 46,075, which compares to 57,875 a month before, and meaning a drop in value from £13.3bn to £10.3bn.

Both of these totals are far below the six-month average, standing at 65,469 approvals at £15.1bn in value.

Regarding remortgages, approvals for these fell significantly, from 51,307 to 32,509 across the month, and from a value of £10.4bn to £7bn.

The six-month average for this metric is 48,098 approvals with a value of £10bn.

Additionally, the report states that the interest rate paid on newly drawn mortgages jumped by 26 basis points to 3.35%.

Octane Capital chief executive Jonathan Samuels comments: “Another reduction in buyer activity was always on the cards, as the tailwinds of the pandemic market boom subside and a generation of homebuyers adjust to the new norm of higher interest rates.

“But while the appetite of the nation’s homebuyers may have diminished somewhat, it certainly hasn’t vanished, and we continue to see a robust level of buyers entering the market despite the wider economic backdrop, with the total sum lent also exceeding expectation.

“Of course, a reduction in demand is likely to bring about a cool in house price growth over the coming year.

“However, we don’t expect the market to flatline as a result of increasing interest rates, as homeownership remains the driving aspiration for the vast majority.”