Net borrowing of mortgage debt by individuals fell back to £4.3bn in October, after a rise to £5.2bn in September, Bank of England data shows.
The Bank’s latest Money and Credit report shows that gross lending slightly decreased in October, to £24.5bn from £24.8bn.
By contrast, gross repayments increased by £1.5bn to £22.1bn in October.
The annual growth rate for net mortgage lending was unchanged when compared to September at 3.2% in October, the highest since January 2023 (3.4%).
Net mortgage approvals (that is, approvals net of cancellations) for house purchase, which is an indicator of future borrowing, decreased by 600 to 65,000 in October.
Approvals for remortgaging (which only capture remortgaging with a different lender) fell by 3,600 to 33,100 in October, the lowest since February 2025 (32,900).
Net borrowing of mortgage debt by individuals fell back to £4.3bn in October, after a rise to £5.2bn in September.
Gross lending slightly decreased in October, to £24.5bn from £24.8bn.
By contrast, gross repayments increased by £1.5bn to £22.1bn in October.
The annual growth rate for net mortgage lending was unchanged when compared to September at 3.2% in October, the highest since January 2023 (3.4%).
Net mortgage approvals (that is, approvals net of cancellations) for house purchase, which is an indicator of future borrowing, decreased by 600 to 65,000 in October.
Approvals for remortgaging (which only capture remortgaging with a different lender) fell by 3,600 to 33,100 in October, the lowest since February 2025 (32,900).
Former RICS residential chairman Jeremy Leaf says: “Mortgage approvals provide the best evidence of likely market activity over the next few months, and it’s clear from these figures that speculation about the Chancellor’s Budget took its toll.”
“On the ground, we are seeing plenty of resilience and a determination to keep transactions running even though they are becoming more protracted and often subject to some tough renegotiating. Affordability is gradually improving, especially as another, earlier base rate cut is more likely.”
“We have often found in similar circumstances that the bigger the pause, the larger the re-set. As a result, we are expecting a rebound over the next few weeks and a more sustained recovery in early 2026 based on what buyers and sellers have been telling us recently.”
Elsewhere, OnTheMarket president Jason Tebb comments: “Intense speculation surrounding the Budget and what it might have in store for the housing market had an impact on approvals for house purchases – an indicator of future borrowing.”
“However, approvals decreased only slightly in October, demonstrating resilience and determination on the whole from buyers and sellers to proceed with their moves.”
“With the rate on newly-drawn mortgages falling again for the eighth consecutive month, affordability challenges continue to ease. Although the Bank of England held base rate in November, this stability, following five base rate cuts over the previous 16 months, is boosting confidence.”
“With another base rate cut expected, perhaps even this month, and with lenders trimming their mortgage pricing as they try to drum up more business before the end of the year, there is further good news for borrowers.”
Meanwhile, Propertymark chief executive Nathan Emerson adds: “Speculation surrounding the Autumn Budget may have played a role in contributing towards a decrease in the number of mortgage approvals during this period.”
“While it is understandable to see a lull regarding mortgage activity on the months leading up to the Chancellor making their fiscal plans known, it is now time to concentrate on ensuring the housing market is fully empowered for already anticipated population growth, via assembling a skilled workforce and supply chain to deliver on housing targets across each nation in what is already demanding timeframe to achieve.”
