The amount of net mortgage debt taken on fell from £5.9bn in September to £4bn in October, figures from the Bank of England (BoE) show.

This, it adds, is the lowest level recorded since November 2021, when this metric stood at £3.8bn.

Meanwhile, approvals for house purchases fell from 65,967 to 58,977 over the same time frame, with the value of these falling from £15.6bn to £13.5bn.

And for remortgages, approvals ticked up from 49,491 in September to 51,280 in September, increasing in value from £10.5bn to £10.9bn.

The previous six-month average for purchase approvals stood at 66,043 and at 47,265 for remortgages.

Coreco managing director Andrew Montlake comments: “It’s no surprise that mortgage approvals were down again in October. The mayhem caused by the mini-Budget saw lenders up their rates sharply, which torpedoed demand.

“November will likely see a continuation of this downward trend as demand waned due to significantly higher interest rates and sky-high inflation. Many prospective buyers are also waiting to see if house prices come down significantly in the months ahead.

“Though we’re already seeing a price correction, a collapse is off the cards due to the continued lack of supply and a jobs market that is still strong, for now at least.

“We’re already seeing a rise in enquiries for secured loans and remortgages to consolidate debt as people seek to batten down the hatches as the full force of the economic storm hits in 2023.

“Where there is still demand is among first-time buyers, many of whom are desperate to exit the rental market as rents hit Olympian heights. If they fix for five years, they’re betting that they’ll ride out any potential negative equity dip.”

And Mather & Murray Financial director Samuel Mather-Holgate says: “Zoopla has confirmed what we all really knew, namely that demand has gone off a cliff since the catastrophic mini-Budget.

“But that hasn’t been the sole factor in destroying demand. A combination of rising interest rates, higher taxes and a lack of confidence among consumers has killed off any confidence in housing for the rest of the winter.

“Prices are likely to fall by around 20% and bottom out late Spring. This is when the BoE will wake up and reverse the terrible policy decision of raising interest rates too far and holding them for too long while the economy crumbles.

“Rates will come down and confidence will return. All the Bank of England is doing by pursuing this policy is inflicting pain on millions of homeowners and, indirectly, renters. It has no impact on imported inflation.”