Proactive Investors - UK mortgage approvals rose more than expected last month, climbing to a two-year high as falling interest rates and the upcoming Budget sparked more action in the housing market.
Net mortgage approvals for house purchases rose to 65,600 in September, the highest level since August 2022, Bank of England data showed, higher than the 65,000 consensus forecast.
Approvals for remortgaging increased by 3,100 to 30,800.
The report also showed a £1.2 billion rise in consumer credit in September, a bit lower than the £1.4bn rise in August and slightly lower than the £1.3 billion expected, but in line with the average over the previous six months.
An £8.2 billion rise in cash in households’ bank deposits was broadly in line with the increases in recent months, with £3.9 billion of that flowing into cash ISAs accounts.
The rise in mortgage approvals comes after mortgage rates have declined in recent months to an average of 4.76% in September from 4.84% in the previous month, though lenders have been lifting rates again as swap rates have rebounded in recent weeks.