Latest Bank of England data showed that net borrowing of mortgage debt by individuals increased to £4.5 billion in November, following a decrease of £1.0 billion to £4.2 billion in October.

Mortgage approvals for house purchase fell by 500 to 64,500. By contrast, approvals for remortgaging rose by 3,200 to 36,600 in November. Approvals for remortgaging (which only capture remortgaging with a different lender) rose by 3,200 to 36,600 in November.

In November, gross lending decreased by £0.6 billion to £23.7 billion, while gross repayments decreased by £3.1 billion to £19.4 billion. The annual growth rate for net mortgage lending increased to 3.3% in November, from 3.2% in the previous month, the highest since January 2023 (3.4%).

Paul Matthews, Senior Director, Risk, Broadstone said “Mortgage borrowing rebounded in November following October’s dip, despite rates remaining unchanged at 4% and the Chancellor announcing her Autumn Budget.

“With December’s interest rate cut, cooling inflation and further rate reductions projected in 2026, mortgage rates look set to continue their downward trajectory into the new year.

“This should help borrowers ring in 2026 with more confidence, even as the effective interest rate paid on newly drawn mortgages ticked up for the first time in nine months – likely influenced by borrowers opting for higher-rate mortgage products, rather than a wider move in rates.

“At the same time, the FCA’s ongoing efforts to ease mortgage market regulation should support greater access to home ownership and provide a timely boost to lending as these reforms take effect.”

Source:  Credit Connect