After their third consecutive monthly decline, purchase approvals now sit at their lowest point since December 2023, when just less than 52,577 purchase deals got the green light.
Remortgaging activity remains healthy, rising to 42,600 in September, from 34,000 in August.
The interest rate on newly drawn mortgages rose from 4.6% to 4.63% month-on-month, while the rate on the outstanding stock of mortgages was 4.03% in September, up from 4% in August.
Secured gross lending inched up to £24.2bn in September from £23.7 bn in August, but remained below the six-month average of £26.3bn and 2% below September 2025.
Net mortgage borrowing decreased to £3.9bn in September, down from £4.2bn in the previous month and below the previous six-month average of £4.9bn.
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Global economic storm
John Phillips, chief executive of Just Mortgages and Spicerhaart, said: “A slowdown in approvals in September really typifies the challenges facing the market, as buyers, sellers and lenders respond to what the Chancellor described yesterday as ‘global economic storms’.
“Rate volatility remained a key characteristic of the market in September. While we managed to see somewhat of a bounce in buyer registrations and valuation requests in September and into October, we know the market is still mainly made up of those needing to make moves, rather than necessarily wanting to. I think the jump in remortgage activity certainly helps demonstrate this.”
Average two- and five-year fixed rates remain just below 6%, according to Moneyfacts.
Richard Pinch, senior director at banking and credit advisory consultancy Broadstone, said: “The continued decline in mortgage approvals and borrowing points to a housing market coming under increasing pressure as affordability constraints and higher mortgage costs weigh on demand.
“This presents a growing challenge for lenders, who must balance supporting new lending with managing potential deterioration in credit quality across existing mortgage portfolios. While arrears have remained relatively contained, robust affordability assessments, proactive monitoring of financial stress and forward-looking stress testing will be critical as households adjust to a prolonged period of higher borrowing costs.”
