Mortgage debt rose by £1.2bn in September

Latest Bank of England data showed that net borrowing of mortgage debt rose by £1.2 billion to £5.5 billion in September, the highest since March 2025 (£13.2 billion).

Net mortgage approvals for house purchase increased by 1,000, to 65,900 in September. By contrast, approvals for remortgaging decreased by 600 over the same period, to 37,200. By contrast, approvals for remortgaging fell by 600 over the same period, to 37,200. 

The data also showed that net borrowing of consumer credit by individuals was £1.5 billion in September, down from £1.7 billion in August. Within this, net borrowing through credit cards was little changed at £0.7 billion in September. Net borrowing through other forms of consumer credit decreased to £0.8 billion, from £1 billion over the same period.

John Phillips, CEO of Just Mortgages and Spicerhaart, said: “While there has been plenty of talk of a holding pattern pre-Budget, today’s figures show that this isn’t the case for all borrowers. An increase in approvals in September demonstrates the appetite and demand that still exists in the market – whether that’s those pushing ahead with plans, or perhaps more likely, those that need to move rather than necessarily wanting to right now. Either way, the figures reflect what we are seeing across our estate agency branches and our brokerage with relatively robust figures for new buyer registrations, valuation requests and mortgage appointments.

“There’s no doubt we are seeing an element of wait and see right now, which hopefully gives way to some pent-up demand once the Budget is cleared and everyone knows the lay of the land. With these figures in mind though, the message to brokers is to remain on the front foot and be there to support those that are navigating the market. Just as important is the role we play in nurturing confidence among clients, highlighting the many opportunities available and encouraging them to push on with their plans.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said “The latest statistics paint a positive picture for house purchases in September, off the back of a weaker August. However, it is worth noting that different times of the year can record seasonal dips or rises for house purchase. The latest data shows a contrast for remortgage approvals though, dropping for another month. However, as we get closer to the end of the year, there will still be some borrowers looking to remortgage, and those still locked into a fixed deal could still agree a new one in readiness for when a fixed term expires. It is worth pointing out some borrowers might not move lenders when they do this, and that the Bank of England approval data for remortgaging only captures those with a different lender.

“Net borrowing of mortgage debt noted a significant jump, rising by £1.2bn to £5.5bn in September, the highest since March 2025 (£13.2bn). Regardless, there will be borrowers sitting on the fence until the Budget, and others stuck due to a short supply of affordable housing. Depending on the area of the UK, house prices may be stretching borrowers searching for a new deal, so it’s important to try to increase their deposit or build up more equity in their home to make up the difference.

“Over recent weeks, borrowers may be pleased to see mortgage rates have been on the downward trend, and it looks promising for more fixed rate cuts to continue due to swap rate moves (which lenders watch very closely to re-price their loans). Now is a great time for anyone looking for a new deal to seek advice from a broker to assess the latest options. Mortgage prisoners who have not been able to borrow more could now break free of their costly variable rate mortgage and secure a lower fixed rate deal.”

Sarah Coles, Head of Personal Finance at Hargreaves Lansdown said “Mortgage approvals recovered from the previous month’s fall, bringing some much-needed hope to the property market. With almost 66,000 mortgages approved in September, it’s pulling ahead of the six-month average of just under 64,000, and is a far cry from the 40,000 or so we saw when mortgage rates were soaring.

“More than six months of falling mortgage rates have played a key role, so better deals that have emerged since September should help support the market. We’ve seen some big lenders cut their rates, as inflation figures were lower than expected and the market started pricing in earlier cuts. These aren’t huge changes, but it should help ease affordability a little.

“Unfortunately, it’s not all sunshine and roses for the housing market. The winter is always a pretty tough climate for property, and there are plenty of headwinds this year in particular. Potential movers are still worried about what the future holds, as more weakness creeps into the jobs market, and the Budget looms. It means this isn’t a boom, it’s just a boost.”

Simon Webb, Managing Director of capital markets and finance at LiveMore said “Buyer interest remains robust as we emerge from the summer slump, but clearly there is ongoing pent-up demand. What the market needs most is a period of stability in monetary policy so the MPC’s decision next week and the outcome of the Autumn Budget will be key.

“For later life lending, the opportunity is clear. Borrowers aged 50 to 90+ still face limited awareness of their options, but demand is there. At LiveMore we continue to broaden access to a full spectrum of later life products, helping to keep housing transactions moving and enabling older borrowers to participate fully in the market.”