Mortgage approvals lifted 8.5% to 47,400 in October compared to the month before, data from the Bank of England shows, posting the first hike in new home approvals since June. 

New remortgaging jumped 15% to 23,700 over the same period, according to the Bank’s latest monthly Money and Credit report.   

The lift occurred despite the ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages rose 24 basis points to 5.25%, the study says.

Octane Capital chief executive Jonathan Samuels says: “With mortgage rate hikes stabilising, it was only a matter of time before mortgage approvals followed suit and today’s increase marks the end of the decline seen since June 2023. 

“Hopes of market boost in the form of a stamp duty saving failed to materialise in last week’s Autumn Statement and so it’s likely that mortgage market activity will remain somewhat subdued until the new year.  

SPF Private Clients chief executive Mark Harris adds: “Mortgage approvals rose as the pause in rate hikes gave borrowers hope that rates may have peaked. 

“According to the Bank of England, the average rate on new mortgages continued to rise, increasing by 24bps to 5.25%.  

“However, the direction of travel for new mortgage rates continues to be downwards with five-year fixes available from sub-4.5%, further boosting borrower confidence and ability to commit to a purchase.”

The post Mortgage approvals rise for first time in four months: BoE  appeared first on Mortgage Strategy.

​