Mortgage approvals rise in October – BoE

The number of mortgage approvals for house purchases across the UK continued to increase in October, climbing to 97,500 from 92,100 in September.

The latest data published by the Bank of England (BoE) revealed this was the highest number of approvals since September 2007.

Approvals in October were also 33% higher than approvals in February 2020 and around 10 times higher than the trough of 9,400 approvals in May.

The BoE suggested the mortgage market had remained “strong” in October, as households borrowed an additional £4.3bn secured on their homes, following borrowing of £4.9bn in September.

Mortgage borrowing had troughed at £0.2bn in April, but the Bank’s figures showed this has since recovered and is slightly higher than the average of £3.9bn in the six months to February 2020.

Approvals for remortgage – which only capture remortgaging with a different lender – were broadly unchanged in October, at 32,900, and the BoE stated they remain around 40% lower than in February.

PRIMIS Mortgage Network proposition director, Vikki Jefferies, commented: “Incentives such as the Chancellor’s stamp duty holiday have gone a long way towards driving buyer appetite, while the pent-up demand that succeeded the housing market’s hiatus has further contributed to the industry’s recovery.

“However, while the market continues to work hard to ensure that borrowers can progress with their applications, it’s crucial for advisers to keep protection front of mind during their conversations with clients.

“Many customers continue to face financial hardship as a result of the pandemic and are, understandably, looking for solutions which can protect them and their families from further difficulty. It is in an adviser’s best interest to ensure that their clients’ finances are adequately protected so that families are properly supported, both during this period and beyond.”

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