By Fatma Younis
Mortgage approvals for house purchases in the UK dropped to 53,443 in September, the lowest monthly figure since December 2023, according to Bank of England data released on Thursday.
Approval Numbers Drop
The total represents a decline from roughly 54,900 approvals in August. The slump comes amid a continued increase in mortgage rates linked to the conflict in the Middle East, with economists expecting further interest rate hikes in the coming months.
Remortgaging and Credit Trends
Approvals for remortgaging rose to 42,600 in September, up from 34,000 in August. Meanwhile, net consumer credit borrowing fell to a three-month low of £1.9 billion, down from £2.7 billion in August.
Expert Reaction
Jason Tebb, president of OnTheMarket, said approvals have now fallen for three consecutive months, with the effective interest rate on newly drawn mortgages rising to 4.63% in September from 4.6% in August. He noted growing expectations that the Bank of England may raise rates at its November meeting.
Katie Clinton, head of financial services advisory at KPMG UK, said the continued decline reflects ongoing strain on household finances, with inflation outstripping private sector pay growth and a base rate increase widely anticipated.
