Mortgage approvals bounce back in September
The property industry’s reaction to the latest mortgage approval data from the Bank of England.
The latest figures show that: –
- Mortgage approvals on house purchases for September sat at 65,944 up (+1.5%) from 64,963 in August.
- Approvals are up slightly (+0.5%) when compared to the 65,628 seen in September 2024.
- This increase shows stability and a return to growth, and there is optimism for further growth in the coming months, especially if bank rate cuts materialise and the autumn budget brings positivity.
Richard Merrett, Managing Director of Alexander Hall, commented:
“A renewed strengthening in mortgage approvals reinforces the positive market sentiment and consistency that we’ve seen across the mortgage sector throughout 2025. Despite broader economic uncertainty, borrowers continue to show confidence, supported by more accessible mortgage products and steady lender appetite.
There is, of course, a chance that we could see mortgage market activity reduce in the short term as the Autumn Budget approaches, with some homebuyers taking a brief pause to see what the Government has up its sleeve.
However, any hesitation will be temporary and, with inflation now holding steady at 3.8% for the third month running, there’s growing optimism that a base rate cut could still arrive before Christmas. If so, it would help fuel renewed momentum and set the stage for a strong start to 2026.”
Jonathan Samuels, CEO of specialist lender Octane Capital, commented:
“A return to positive growth in September, following the summer lull seen in August, provides further reassurance that confidence remains embedded within the mortgage market. Buyer demand has been remarkably consistent throughout the year, and the stability we’re seeing in approval volumes reflects that strength.
Of course, major fiscal events such as the upcoming Autumn Budget can bring a degree of hesitation among homebuyers, but this is typically short-lived. The longer-term picture remains one of resilience, and the steady pattern of approvals seen throughout 2025 highlights a market that is balanced, confident, and quietly strengthening.”
Colby Short, Co-founder and CEO of GetAgent, commented:
“The latest figures show that mortgage approvals have bounced back following last month’s dip, providing yet more evidence that the market remains on a stable and upward trajectory. Buyer intent hasn’t faltered and we’re now seeing that intent convert into completions, with agents reporting strong sales activity across much of the country despite the wider economic noise.
It’s only natural that fiscal events such as the upcoming Autumn Budget may create brief pauses in activity, but the long-term picture remains overwhelmingly positive. Approval volumes have held firm throughout 2025 and we’re on course for what’s shaping up to be an extremely healthy year for both approvals and transactions alike.”
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