UK Mortgage Approvals Drop to Lowest Level Since 2023 in September

UK lenders approved 53,443 mortgages for house purchases in September 2026, the lowest monthly figure since December 2023, according to Bank of England figures released on 29 October. The number fell from roughly 54,800 in August, indicating continued weakness in demand for new home loans.

Approvals for remortgaging moved in the opposite direction, increasing to approximately 42,600 from 34,000 in August. The divergence suggests that existing borrowers were still actively arranging replacement loans even as fewer prospective buyers secured approval to purchase homes.

Net mortgage borrowing by individuals declined to about £3.9 billion in September from £4.2 billion in August. The effective rate on newly drawn mortgages increased to 4.63% from 4.60%, adding to affordability pressures. Mortgage approvals measure lenders' firm offers and do not directly count completed home sales.

Consumer credit borrowing also slowed, with households borrowing a net £1.9 billion in September compared with £2.7 billion in August. The annual growth rate of consumer credit nevertheless edged up to 9.8%, showing that the monthly flow and year-on-year stock of lending can move differently.

The figures provide a picture of borrowing conditions in September, not an announcement of a new interest-rate decision. Changes in mortgage pricing and household budgets may continue to influence demand, but the data alone do not establish the outcome of future monetary-policy meetings.