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Mortgage lending dipped in October

Christina Hoghton
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Christina Hoghton

Lending fell slightly last month but there was a double-digit rise in borrowers switching to a new deal

Motgage lending in October 2019 was £25.5bn, a slight dip of 0.9% compared to the same month last year, according to UK Finance.

The financial trade body said that mortgage approvals for home purchases by the main high street banks in October were 3% higher than a year ago, while approvals for other secured borrowing were down 2.1%.

However, remortgage approvals were significantly up, by 12.7% year on year.

Sam Harhat, head of financial services at Andrews Property Group, said: “The Brexit tempo increased significantly in October and yet buyers and homeowners showed the same level-headedness they have throughout most of 2019.

“Activity levels aren’t off the scale but the property market is ticking over exceptionally well given the political environment we’re in.

“Remortgage activity remains particularly strong as people seek to lock into a lower rate before we leave the EU.”

Director of Benham and Reeves, Marc von Grundherr, added: “Buyer demand in the way of mortgage approvals has remained consistent despite wider market uncertainty but these certainly aren’t the worst set of figures considering the wider landscape and the seasonal influence that slows the market in the lead up to Christmas.

“The good news is that people are still buying homes despite the political paralysis we’ve been subjected to in recent months and while we may have a long winter ahead, there are plenty of positives to take.”