You are here: Home - News -

September mortgage lending dips to £21.5bn – UK Finance

  • 24/10/2018
  • 0
Gross mortgage lending across the residential market dropped in September on a yearly and a monthly basis, data has shown.


On a yearly basis, mortgage lending fell by 1.2% in September 2018 to £21.5bn from £21.8bn in the same month last year, according to the latest report released by UK Finance.

In August 2018, this figure stood at £24.4bn, showing a fall of nearly 12% on a monthly basis.

The number of mortgages approved by the main high street banks dropped by 9.1% compared to September 2017.

Approvals for house purchase decreased by 10.1%, remortgage approvals were down 7.4%, whilst approvals for other secured borrowing were 9.8% lower.

Eric Leenders, managing director of personal finance of UK Finance, said that mortgage market softened slightly in September, following strong remortgaging activity in the months preceding the recent base rate rise.

He added: “Consumers are increasingly choosing to keep cash close to hand, with deposits held in instant access accounts showing steady growth.”


Softened mortgage market puts pressure to pick up momentum

Jeff Knight, marketing director for Foundation Home Loans, said that the market may seem fairly flat, as households continue to be squeezed by inflation and perplexed by market uncertainty.

He added: “With the Budget looming and rumours stamp duty will either be banded, overhauled or increased, buy-to-let landlords will be hoping for clarity to safeguard this side of the market. For now, the remortgaging market moves steadily on as landlords enjoy more specialist offers from lenders to mitigate this uncertainty, and this should maintain momentum for the months ahead.”

Mark Harris, chief executive of mortgage broker at SPF Private Clients, said that this softening of the mortgage market in September comes as no great surprise as Brexit uncertainty is causing a number of borrowers to defer making decisions.

He added: “As soon as we have a definite deal, whatever that may look like, we expect to see a bounce as people finally make the decisions they have been putting off.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Experian begins counting rental payments into credit score

Tenants will now be able to use rental payments to build up their credit score, as reference agency Experian starts...