Net mortgage approvals for house purchases, which is an indicator of future borrowing, increased by 500 to 66,500 in December, reversing a fall of 2,300 in November.
Net borrowing of mortgage debt by individuals increased by £1.0 billion to £3.6 billion in December, following a fall in net borrowing of £0.9 billion in November.
Alice Haine, personal finance analyst at investment platform, BestInvest platform, said: “Consumer and business confidence has taken a hit since Reeves announced £40bn in tax rises in her Autumn Statement. But despite the bleaker mood, net mortgage lending also increased in December, as buyers took advantage of improving affordability levels.
“The outlook for 2025 is mixed. Buying activity in the first quarter is expected to ramp up as buyers rush through deals in a bid to beat the change in stamp duty thresholds at the start of April.
“For now, borrowing costs remain relatively high and with consumer confidence levels mired by uncertainty, first-time buyers and existing homeowners looking to secure a new mortgage deal may still be feeling nervous.”
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