Mortgage approvals for house purchase slide to just below six month average

Mortgage approvals for house purchase fell in September, taking lending below the previous six-month average, Bank of England figures show.

Figures from the central bank show there were 66,232 loan approvals for house purchase in September, down from 67,232 in August.

It was also below the previous six-month average of 66,867.

Overall approvals were up to 127,565, boosted by an increase in remortgage lending from 46,270 in August to 47,598 during September.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Despite it being a slower month for lending, the mortgage market remains in a strong and robust position, even amid talk of a potential rate rise. Thousands of borrowers are still securing their rates now, before the Bank of England raises the base rate.

“However, it’s important to remember that a rise won’t bring us back to the higher interest rates of the past just yet. If anything, it should act as a nudge to those borrowers who haven’t yet remortgaged and encourage them to think about securing their rates by contacting a broker now, before any further rise in the future.”

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