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.”

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