This is according to the latest figures from the Bank of England, which also reveals that net borrowing of mortgage debt by individuals rose by £0.9bn, to £3.4 bn in October, , following a decrease in net borrowing of £0.3 billion in September.

The annual growth rate for net mortgage lending rose to 1.1% in October from 0.9% in September, continuing the upward trend observed since April 2024.

Gross lending increased to £20.2bn in October, from £19.5bn in September, while gross repayments where little changed at £17.7bn.

Commenting on the latest figures KPMG global and UK head of financial services Karim Haji, at KPMG said “Mortgage approvals have risen for the fifth month in a row, signalling continued appetite for longer-term borrowing. Alongside this, the increase in remortgage approvals shows that both prospective and existing homeowners are engaged with the market.

“While this latest data paints a buoyant picture of the housing market, the ripple effects of the Budget and the corresponding hikes on fixed rate mortgage prices could dampen the outlook.

“October’s dip in consumer borrowing, combined with falling consumer confidence, points to worsening sentiment ahead of the Budget, as some borrowers paused their credit plans to see what impact it would have on their finances. Others may have been holding out for further base rate cuts before borrowing.

“With inflation now back above target and expected to rise in the coming months, many households will continue to struggle with their finances, particularly in the face of higher energy bills.”

Propertymark chief executive Nathan Emerson said: “The amount of mortgage debt increasing represents a positive trend among consumers who are ready to take advantage of the decrease in interest rates and inflation.”

He added: “This could be the initial sign of a rush to the market for buyers and sellers in England and Northern Ireland in order to beat the Stamp Duty rises due to commence from April 2025. Despite winter months being historically quieter, we are likely going to see people taking advantage of more competitive mortgage deals due to the easing in inflation and a determination to save potentially thousands in tax before the new financial year.”

Spicerhaart and Just Mortgages  chief executive John Phillips said the rise in net mortgage borrowing reflected growing confidence in the housing market.  He added: “The recent Bank of England decision to cut interest rates to 4.75% in November will provide a welcome boost to borrowers, potentially encouraging more activity as we move into the new year. However, with inflation ticking up to 2.3% in October, affordability remains a critical concern.

“In light of the recent Budget, it’s vital that policymakers focus on measures to sustain this upward trajectory, ensuring the market remains accessible and stable for both first-time buyers and existing homeowners. While these figures are encouraging, continued targeted support is essential to build on this momentum and secure long-term growth in the housing sector.”