Mortgage approvals climb for fourth consecutive month

Mortgage approvals on house purchases for September sit at 65,647 up (+1.1%) from 64,958 in August.

Following revised figures from the Bank of England, this marks four consecutive months of positive growth in mortgage approval levels with the monthly figure having increased consistently since June.

Approvals remain considerably higher (49.3%) than the 43,958 seen in September 2023.

There is also optimism for further mortgage approval increases in the coming months, especially if another bank rate cut materialises in November.

CEO of specialist lender Octane Capital, Jonathan Samuels, said, “Mortgage approvals are the fuel that drives the wider machine of the UK property market and, as it stands, it’s benefitting from a full tank, having been running on empty for much of the last two years.

Buyers are returning with confidence and whilst they may pause for breath ahead of tomorrow’s Autumn Statement, we expect to see 2024 finish on the front foot.”

Co-founder and CEO of GetAgent.co.uk, Colby Short, said, “Mortgage approvals have sat consistently above the 60,0000 threshold now since February of this year and this very much demonstrates a market that has found its feet following what was a very difficult period for the mortgage sector and the nation’s homebuyers.

With another interest rate cut, at least, expected before the year is out, we’re likely to see more homebuyers entering the market ahead of the Christmas break, in preparation of hitting the ground running in 2025.”

Stephanie Daley, Director of Partnerships at mortgage advisor, Alexander Hall, added, “Despite the air of uncertainty caused by the looming Autumn Statement, the UK property market has continued to benefit from a robust level of mortgage market activity, recording a fourth consecutive month of positive growth where approvals are concerned.

This momentum is only likely to build further once the dust has settled on tomorrow’s Budget, as both buyers and lenders will have a clearer view of where they stand within the market.

The outlook remains a very positive one for the remainder of the year and we expect that the mortgage sector will continue to act as the catalyst that drives the recovery of the wider market forward as we head towards 2025.”