British lenders approved 53,443 mortgages for house purchases in September 2026, the lowest monthly total since December 2023, according to Bank of England data published on Thursday, 29 October. The figure was down from 54,814 in August and below the level economists polled by Reuters had expected. The Bank's rounded figures put approvals at 53,400 in September, compared with 54,800 in August.

The fall is the latest sign that higher borrowing costs are cooling demand for new home loans. Net mortgage lending also fell, to £3.866 billion in September, its lowest since May, while the Bank reported net borrowing of mortgage debt by individuals at £3.9 billion, down from £4.2 billion in August and below the previous six-month average of £4.9 billion.

Remortgaging rises as new purchases fall

While approvals for new purchases fell, approvals for remortgaging with a different lender rose sharply, to 42,600 in September from 34,000 in August, the Bank of England said. That contrast suggests many existing borrowers are actively seeking new deals as their current terms come to an end, even as fewer buyers enter the market.

Reports of the data linked the pressure on mortgage rates in part to higher UK government borrowing costs in recent months, and financial markets were reported to see a Bank of England rate rise to 4% from 3.75% at its meeting next week as a near certainty. That expectation is a market view, not a decision already taken.

Household borrowing picture

Alongside the mortgage figures, unsecured lending to consumers grew at an annual rate of 9.8% in September, the fastest since April 2018, Reuters reported. In September alone, unsecured borrowing rose by £1.914 billion, down from a record £2.683 billion in August.

Sources: Bank of England, Money and Credit, September 2026; Reuters.