Net mortgage approvals for house purchases increased to 68,300 in October, the highest level in over two years, new Bank of England (BoE) data has shown.

This was the highest level recorded by the Bank since 72,200 in August 2022.

The BoE also revealed that approvals for remortgaging increased by 500 to 31,400, while net borrowing of mortgage debt by individuals also increased by £900m, to £3.4bn in October.

October also saw the annual growth rate for net mortgage lending rise to 1.1%, from 0.9% in September, continuing an upward trend observed since April.

CEO of Spicerhaart and Just Mortgages, John Phillips, said that the BoE figures reflect “growing confidence in the housing market”.

“The slight increase in remortgage approvals to 31,400 also suggests that homeowners are beginning to explore options as market conditions evolve,” Phillips added.

“The recent BoE decision to cut interest rates to 4.75% in November will provide a welcome boost to borrowers, potentially encouraging more activity as we move into the new year. However, with inflation ticking up to 2.3% in October, affordability remains a critical concern.

“In light of the recent Budget, it’s vital that policymakers focus on measures to sustain this upward trajectory, ensuring the market remains accessible and stable for both first-time buyers and existing homeowners. While these figures are encouraging, continued targeted support is essential to build on this momentum and secure long-term growth in the housing sector.”

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