The number of mortgage approvals rose to 69,630 in October compared to 68,874 in September - the second highest seen this year.
However the number of approvals for remortgaging dropped to 39,629 compared to September's figure of 41,163.
Total lending to individuals increased by £4.8 billion in October. Gross lending secured on dwellings was £20.1 billion and repayments were £17.0 billion.
Peter Rollings, CEO of Marsh & Parsons, commented:
“Lending has rebounded after September’s downward blip, and mortgage approvals have leaped an impressive 17% year-on-year. All the vitals are looking strong, and remortgaging and locking into long-term deals will still very much be the name of the game for many existing homeowners awaiting potential interest rate movement in 2016.
“These figures only look at October – and George Osborne’s package of housing announcements in the Autumn Statement last week will have keyed up a new wave of first-time buyers eager to get their foot in the door. We may also see a winter flurry of buy-to-let borrowing before April’s stamp duty shake up, as landlords seek to invest before the additional charge is levied on second homes. The big question as we enter the New Year is whether the supply of homes will match the increasing demand that’s clearly evident in the mortgage market.”
Richard Pike, Phoebus Software sales and marketing director, said:
“The number and value of mortgage loans over the last three months, as reported by the Bank of England, has been fairly consistent. However, at £19.7bn the value is 10% lower than the £21.8bn estimated for October by the Council of Mortgage Lenders earlier this month. I will be interested to see how these figures compare when the CML’s statistics are confirmed in December and where the differences lie. The value of loans in August for instance was lower than in October but higher in number, so will it be number or value, or both?
“Following the recent spending review, and the Chancellor’s moves to curb buy-to-let in his bid to increase homeowenship in the UK, one part of the market which has been most buoyant throughout the year is likely to take a hit in the coming months. Landlords, and would-be landlords, will be considering their position and the future viability of buy-to-let.”
Nicola Georgiou, Managing Director at Freedom Finance, added:
“Today’s figures show that total lending to individuals has increased by £4.8 billion in October. With consumer credit also rising by £1.2 billion, it seems clear that consumer confidence is continuing to grow steadily. The demand for personal loans has increased due to better credit availability, lower interest rates and stronger household finances."
