Net mortgage approvals hit two-year high – BoE

Net mortgage approvals for house purchases rose to 64,900 in August, the highest level in two years, according to new Bank of England (BoE) figures.

The central bank’s data showed that net mortgage approvals were last higher in August 2022 when the figure reached 72,000.

Approvals for remortgaging, which just capture remortgaging with a different lender, increased from 25,200 in July to 27,200 in August, after five consecutive month-on-month falls.

The BoE also revealed that net borrowing of mortgage debt by individuals totalled £2.9bn in August, compared to £2.8bn in July. Gross lending registered an increase of £300m to £19.9bn in August, while gross repayments increased by £1.3bn over the same period, to £18.4bn.

Chartered financial planner at Quilter Cheviot, Rosie Hooper, said that the latest BoE figures “paint a picture of a UK housing market that is regaining momentum”, amid easing borrowing costs and renewed buyer activity.

“Individuals borrowed a net £2.9bn in mortgage debt in August, up slightly from £2.8bn in July, reflecting continued demand for housing,” Hooper said.

“Mortgage approvals also rose to 64,900, the highest level since August 2022, indicating that prospective buyers are taking advantage of improving market conditions and lower mortgage rates. The rise in remortgaging approvals from 25,200 to 27,200 further suggests that homeowners are responding to falling borrowing costs by locking in more favourable deals.”

CEO of Spicerhaart and Just Mortgages, John Phillips, added: “Looking ahead, the combination of falling swap rates and rising mortgage approvals signals a more positive outlook for the mortgage market.

“Additionally, the increase in borrowing by private non-financial corporations suggests growing business confidence, which could help stimulate broader economic growth as we move towards the end of the year.”



Share Story:

Recent Stories


Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.