Mortgage lending rose in October

Christina Hoghton
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Christina Hoghton

Total lending was up last month, as was the number of homeloans approved by banks

Mortgage lending rose in October following a dip in September, according to figures from the Bank of England.

It said that mortgage loans totalled £19.9bn last month, up from £19.1bn a month earlier.

Mortgage approvals also enjoyed strong growth in October, with 124,458 mortgages approved, compared with 118,470 in September and 113,524 in August. Approvals for both house purchase and remortgaging saw monthly increases, rising to 67,518 and 43,513, respectively.

House purchase approval growth was robust, up from 63,594 in September, while remortgaging increased from 42,606. The number of approvals for other purposes was 13,427, compared to the average of 12,726 over the previous six months.

Mark Dyason, director of independent mortgage broker, Edinburgh Mortgage Advice, said: “The strong October mortgage approvals data for house purchases underlines how Brexit has actually spurred people into action rather than driven them away from property.
“People are aware that rates have never been better and at the same time are uncertain about what’s coming next politically.
“As a result, they’re moving now rather than risk getting their plans skewered by some other major development in 2017.
“Prices in many areas, and certainly the south of England, are a lot more attractive than they were a year or so ago. In many cases it’s a buyer’s market and they are increasingly taking advantage of this fact.”