"The increase in longer term fixes is telling in itself, perhaps the insecurity of what happens when Article 50 is implemented in 2017 is the driving factor here."
The number of approvals for remortgaging was 42,440, compared to the average of 41,882 over the previous six months.
Lending secured on dwellings increased by £3.2 billion in September, up from a £2.9bn rise in August and broadly in line with the average over the previous six months.
Gross lending secured on dwellings was £18.9 billion and repayments were £16.3 billion.
Richard Pike, Phoebus Software sales and marketing director, commented: “The figures from the BoE today show that the mortgage market continues to buck the expected ‘post referendum’ trend. The effect of low interest rates appears to be having the desired effect when it comes to consumer confidence and spending. Unsurprisingly the remortgage market is bubbling along and in general keeping the market as a whole in a positive position. The increase in longer term fixes is telling in itself, perhaps the insecurity of what happens when Article 50 is implemented in 2017 is the driving factor here.
“The purchase market is more subdued which could be down to supply rather than appetite. It is well documented that demand continues to outweigh supply, which is a situation that has no quick fix. As we saw in the GDP figures last week, construction output is down, despite all efforts. We do need to be moving much faster to keep up with demand; the worrying question is do we actually have the capacity, skilled labour and materials to build the number of houses we need?
“Nonetheless, the likelihood is that we will continue to see modest growth, especially in this last quarter. As help-to-buy comes to a close those with smaller deposits will have to move fast to take advantage of the scheme, which could mean a surge in first-time-buyer activity."
Jeremy leaf, north London estate agent and former RICS chairman, added: "The figures show a welcome bounce back in lending from the very disappointing figures the previous month. While bearing in mind that these numbers are a little historic, they reiterate what we are seeing on the ground that following an initial pause buyers are getting back to business, albeit a bit more cautiously.
"Looking forward, we expect similar numbers going into the autumn as the market slowly recovers from the initial shock of the referendum outcome."
