Approvals up 6% in October: BoE

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October saw mortgage approvals rise six per cent, the Bank of England’s Money and Credit data shows.

There were 67,500 house purchase approvals in October, worth £12bn, up from 63,600 and £11.2bn in September.

There was also a 2 per cent rise in remortgage approvals to 43,500 with a value of £7.6bn, up from 42,600 and £7.4bn in September.

The number of approvals for other purposes was 13,427, up on the monthly average of 12,726 for the previous half year.

Total lending was £19.9bn in October, up from £19.1m in September.

Edinburgh Mortgage Advice director Mark Dyason says: “Brexit has created uncertainty but increasingly that uncertainty is causing people to act rather than do nothing. Uncertainty is emboldening buyers to take action.

“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.

“Better prices and the best mortgage rates you could imagine in a political environment that could change very quickly is causing people to act.”

Hope Capital chief executive Jonathan Sealey says: “Although some businesses have remained cautious, consumer confidence and lender appetite has continued to grow post-Brexit, and indeed much quicker than first anticipated.

“It will be interesting to see if the Chancellor’s Autumn Statement which reinstated the government’s commitment to housing through targeted and sustained investment is enough to tackle the housing crisis.”

Bluestone Mortgages managing director Matt Andrews says: “The fact that the Autumn Statement has promised a £1.4bn investment into house building is likely to support the rise in purchase and lending activity even further, as this may finally help to address the persistent lack of UK housing supply.

“However, whilst this market continues to expand, there are still many borrowers who remain underserviced by mainstream lenders. Contractors, the self-employed, those with adverse credit histories are still being automatically rejected for credit because they don’t fit rigid lending criteria.”