Gross mortgage lending across the residential property market in the UK increased by 5.6% year on year in October to £25.5 billion, according to the latest industry figures to be published.
However, the number of mortgages approved by the main high street banks in October was 4.1% lower than last October, the data from UK Finance also shows.
But overall approvals for house purchase were 3.6% higher, while remortgage approvals were 13.5% lower and approvals for other secured borrowing were down by 1.3%.
‘Overall mortgage lending grew in October, despite an uncertain economic environment, while house purchase mortgage approvals by the main high street banks were also up on the previous year,’ said Eric Leenders, managing director of personal finance at UK Finance.
‘However remortgaging activity has softened, following a period of strong growth driven by fixed rate loans reaching maturity and anticipation of August’s base rate rise,’ he added.
According to John Goodall, chief executive officer of buy to let specialist Landbay, increased activity in the mortgage market is likely due to attractive deals being available for those looking to purchase a property.
‘Remortgaging has levelled off after a period of increased activity ahead of the August interest rate rise, but is still buoyant. With asking prices in London dropping, a buyers’ market is developing. We could start to see further small improvements in activity as a result,’ he said.