What are the latest mortgage lending numbers?

Net borrowing of mortgage debt by individuals remained at £6.1 billion in September, according to data released by the Bank of England (BoE).

The figure was above the past six-month average of £5.7 billion and was above the pre-pandemic average of £4.3 billion in the 12 months up to February 2020.

Gross lending increased to £27 billion in September from £25.9 billion in August, while gross repayments slightly increased to £20.6 billion in September from £20.4 billion of the previous month.

The BoE data also found that ‘effective’ interest rate – the actual interest rate paid – on newly drawn mortgages increased by 29 basis points to 2.84% in September, the largest monthly increase since December 2021 when base rate began rising.

The rate on the outstanding stock of mortgages increased by seven basis points to 2.24%.

Read more: What is the future of the UK mortgage market?

Jeremy Leaf, a north London estate agent and a former RICS residential chairman, noted that the latest BoE money and credit data were starting to reflect house buying intentions ahead of the September 23 mini-budget.

“On the ground, the situation deteriorated further in the weeks following when uncertainty over mortgage payments came on top of worries about the increasing cost of living,” Leaf explained.

“Fortunately, most of those approvals are resulting in sales as buyers wish to take advantage of rates already secured which are unlikely to be repeated for some time.

He added: “Mortgage rates are starting to come down too, which has helped restore some of the lost demand albeit rather slowly, but most sales are continuing, not collapsing.”

Mark Harris, chief executive at mortgage broker SPF Private Clients, commented:  “Thankfully, the situation has eased for borrowers since the worst of the fallout from the mini budget. Lenders have been returning with fixed-rate mortgages pegged at more attractive levels as swap rate volatility has calmed a little.

“With another interest rate rise likely this week, borrowers concerned about their mortgage should seek advice from a broker to find out what options are available.”