Mortgage approvals for house purchases fell to 53,400 in September 2026, according to Bank of England figures published on Thursday 29th October, while remortgage approvals jumped to 42,600. The contrasting numbers suggest a housing market in which existing homeowners are increasingly active in reviewing their borrowing, even as fewer people secure mortgages to buy a property.
September’s mortgage approvals were down from 54,800 in August and well below the previous six-month average of around 58,800. Meanwhile, remortgage approvals rose from 34,000, an increase of 8,600 in just one month.
For buyers, sellers and housebuilders, the latest mortgage approvals are another warning that housing transactions may remain subdued. However, these are approvals rather than completed purchases, so the figures should not be confused with sales volumes or planning permissions.
Bank of England figures: August and September compared
The Bank of England’s seasonally adjusted figures show how borrowing changed between August and September 2026. The Bank’s mortgage approval figures are net of cancellations, whereas the borrowing figures measure money lent net of repayments.
| Measure | August 2026 | September 2026 |
|---|---|---|
| House-purchase mortgage approvals | 54,800 | 53,400 |
| Remortgage approvals | 34,000 | 42,600 |
| Net mortgage borrowing | £4.2bn | £3.9bn |
| Gross secured lending | £23.7bn | £24.2bn |
| Net consumer credit borrowing | £2.7bn | £1.9bn |
| Credit-card borrowing | £1.3bn | £0.7bn |
| Other consumer credit borrowing | £1.4bn | £1.2bn |
Source: Bank of England, Money and Credit, September 2026. Figures are rounded as published. See the Bank’s Chart 2 for the historical mortgage approvals series and Chart 3 for consumer credit trends.
Richard Pinch, senior director at Broadstone, told Reuters that the decline pointed to “a housing market coming under increasing pressure” as higher borrowing costs affected demand. This is market commentary, not a Bank of England forecast.
Mortgage approvals fall as housing market cools
The Bank’s seasonally adjusted figures show house-purchase mortgage approvals declined by around 2.6% compared with August. Against the previous six-month average, September’s 53,400 approvals were approximately 9.2% lower.
Reuters reported that the more precise figure of 53,443 was the lowest since December 2023. That makes the September release particularly significant, rather than merely an unremarkable month-to-month fluctuation.
Mortgage approvals are a forward-looking indicator of lending for purchases, because the lender typically approves the mortgage before the transaction completes. A weaker approvals figure therefore raises questions about the likely strength of purchases in subsequent months, although it cannot predict completions on its own.
Mortgage approvals can be affected by borrowing costs, income, affordability tests, buyer confidence and available homes. It would be too simplistic to say the September fall proves that one particular factor caused it.
Why remortgaging rose while mortgage approvals fell
Remortgaging approvals rose to 42,600 in September, compared with 34,000 in August. That is an increase of approximately 25.3% in one month.
Importantly, the Bank’s remortgaging series covers borrowers changing to a different lender. It does not include every product transfer made by an existing borrower staying with the same lender. The figure is therefore not a complete count of people reviewing or renewing their mortgage deals.
One plausible explanation is that households reaching the end of fixed-rate agreements are exploring alternatives. However, the statistical release does not establish borrowers’ individual reasons for switching, and remortgaging activity should not be read as a direct measure of housing demand.
The effective rate on newly drawn mortgages increased from 4.60% in August to 4.63% in September. On the outstanding stock of mortgages, the effective rate increased from 4.00% to 4.03%. These are actual rates paid across the relevant lending, not necessarily the advertised price of a particular fixed-rate product available today.
Mortgage borrowing drops to £3.9 billion
Net mortgage borrowing by individuals fell to £3.9 billion in September, down from £4.2 billion in August. It was also below the preceding six-month average of £4.9 billion.
The Bank separately recorded £24.2 billion of gross secured lending, slightly higher than the £23.7 billion reported in August. Mortgage repayments also increased, from £20.2 billion to £21.4 billion. The distinction matters: gross lending can rise even when net borrowing falls because repayments change too.
The annual growth rate of net mortgage lending eased to 3.4%, from 3.6%. Taken together with mortgage approvals for purchases, these figures point to slower growth in outstanding mortgage debt rather than an outright contraction in the total mortgage market.
Consumer credit borrowing also slows sharply
The September report also provides a snapshot of household borrowing beyond property. Net consumer credit borrowing fell to £1.9 billion, compared with £2.7 billion in August, and slightly below the six-month average of £2.1 billion.
Within the total, credit-card borrowing dropped from £1.3 billion to £0.7 billion. Other credit, including personal loans and car dealership finance, fell from £1.4 billion to £1.2 billion.
There is a qualification here that is easy to miss: despite the lower monthly flow, the annual growth rate of consumer credit edged up from 9.7% to 9.8%. A weaker single month does not necessarily indicate a sustained reduction in household indebtedness.
Effective interest rates on interest-charging credit cards rose to 21.71%, while interest-charging overdrafts reached 20.79%. The rate on new personal loans eased slightly to 9.85%. These differences are relevant to household budgets, but the Bank has not said that the change in borrowing was caused by any one of them.
What lower mortgage approvals mean for housing
Planning Geek readers will be interested in the implications for housing supply. A weak market for purchases can make it harder for developers to turn permissions into occupied homes, particularly where schemes depend on private sales and mortgage-funded purchasers.
But this month’s mortgage approvals do not demonstrate that permitted developments are being delayed or that new planning consents are falling. Those are different measurements and would need separate evidence.
There is also a timing point. These figures relate to September, whereas the government’s Autumn Budget was delivered on 28th October. Whatever the market reaction to the Budget, it cannot explain September’s recorded mortgage approvals.
Our earlier report on UK house price growth losing momentum provides additional context about the market. The distinction between demand for homes and the pipeline of planning permissions is especially important when assessing housing delivery. Our Housing Planning Index explains how housing need, land supply and delivery are measured separately from mortgage demand.
Looking ahead, the next Bank of England Money and Credit release is scheduled for 30th November 2026. That will help establish whether September’s drop in mortgage approvals was an isolated weak month or part of a longer pattern.
For the complete statistical series and accompanying tables, the Bank of England’s September 2026 Money and Credit release provides the primary figures.
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