Household mortgage debt borrowing rose by £1.2bn to £5.5bn in September, the highest for six months, Bank of England data shows.  

This figure is the largest amount since March, when net borrowing hit £13.2bn, according to the Bank’s latest Money and Credit report.

House purchase approvals rose by 1,000, to 65,900 in September.  

By contrast, approvals for remortgaging fell by 600 over the same period, to 37,200. 

Gross lending amounted to £24.9bn in September, up from £23bn in the previous month.  

Gross repayments rose slightly in September, to £20.3bn from £20bn. 

SPF Private Clients chief executive Mark Harris says: “With mortgage approvals picking up again in September, the underlying resilience of the housing market is in evidence despite many challenges facing it. 

“The effective interest rate paid on new mortgages fell to 4.19% in September, and since then, we have seen some lenders trim their mortgage rates further.  

“However, with the rate on the outstanding stock of mortgages unchanged at 3.89%, affordability remains a concern for many. 

Harris adds: “Remortgaging numbers fell, suggesting that borrowers may be sticking with their existing lender and refinancing rather than going through the hassle of another mortgage application with a new lender.” 

MT Finance Tomer Aboody points out: “The ongoing uncertainty with regard to the upcoming Budget [on 26 November] is inevitably resulting in buyers and sellers adopting a ‘wait and see’ approach.  

“Despite cheaper borrowing rates, transactional levels remain stunted.  

“This further underlines the case for Chancellor Rachel Reeves taking action in her Budget to reduce or reform stamp duty in order to allow the market to really start to function effectively, which in turn will help strengthen the wider economy.” 

Quilter financial planner Ian Futcher adds: “While the data paints a positive picture of September, the mood in the market has since shifted.  

“With the Budget now fast approaching and rumours brewing about potential changes to housing taxes or stamp duty reliefs, many people are growing more cautious.  

“Decisions about buying or selling a home are increasingly being put on hold until there is greater clarity on what the Chancellor will do. A small recent rise in mortgage rates has only reinforced that sense of hesitation.”