The Newshound

Homebuyer mortgage approvals slump to their lowest since December 2023, with a rate rise feared as soon as next week

For sale boards outside a row of terraced houses, as buyers and remortgagers face a double squeeze with both purchase and refinancing approvals falling.
For sale boards outside a row of terraced houses, as buyers and remortgagers face a double squeeze with both purchase and refinancing approvals falling.
Mortgage approvals have fallen to their lowest level since 2023, with the sustained rise in borrowing costs driven by ongoing Middle East conflict pushing up global finance costs.
Mortgage approvals have fallen to their lowest level since 2023, with the sustained rise in borrowing costs driven by ongoing Middle East conflict pushing up global finance costs.

Bank of England data reveal that home-purchase mortgage approvals came in at just 53,443 in September, falling well short of the six-month average of around 58,800 and retreating from 54,900 in August. Economists warn a Bank Rate rise could come as soon as 5 November, as inflation at 3.5% outstrips private sector pay growth and energy prices stay volatile due to Middle East conflict.

Remortgaging ran against the broader trend, with approvals climbing to 42,600 from 34,000 in August, as borrowers rush to exit expiring fixed-rate deals.

KPMG's Katie Clinton warned there is 'little good news on the horizon' for stretched UK households.

MoreLBCMortgage approvals fall further to lowest since 2023The IndependentMortgage approvals dip further to a three-year lowReutersUK lenders approve fewest mortgages since 2023 as borrowing cost risesNacionaleUK mortgage approvals fall to their lowest since December 2023 as borrowing costs rise - Nacionale
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