Mortgage approvals up by 1,000 in September – but experts warn "market is treading water rather than making waves"

MORTGAGE approvals are up by 1,000 in September – but experts warn the housing "market is treading water rather than making waves".

Mortgage approvals for house purchase increased by 1,000, to 65,900 in September, Bank of England data out today showed.

But approvals for remortgaging decreased by 600 over the same period, to 37,200.

Net borrowing of mortgage debt by individuals rose by £1.2 billion to £5.5 billion in September, the highest since March 2025 when it was £13.2 billion.

This comes as lenders have started lowering their mortgage rates – TSB have cut rates twice this week already.

Ranald Mitchell, Director at Norwich-based Charwin Mortgages, said the figures reflect growing uncertainty in the housing market.

He added: “These figures feel very much like a look over our shoulder rather than a reflection of current market sentiment. While September’s uptick in purchase approvals suggests confidence at that time, today’s reality is more subdued. Remortgaging activity also tells a story of caution. 

"Homeowners are increasingly wary, scaling back or shelving capital-raising plans as the economic mood hardens and disposable income pressures mount. All in all, the market is ticking along rather than taking off. 

"It’s stable, but far from fast paced more a case of careful navigation than confident acceleration. That said, history tells us that when the fog of fiscal uncertainty lifts, activity often rebounds quickly, and Q1 2026 could well see that bounce.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said he expected more movement in remortgaging in October.

He added: "In the grand scheme of mortgages, these are small fluctuations and don't really tell the mood of the buyer, nor the market overall. 

“In most areas, the estate agents, solicitors, and mortgage brokers are sharing the same feedback, numbers are down overall, and confidence is low, as the market waits with bated breath. Rates are starting to fall a little, which will encourage the remortgage market, so I would expect those numbers to flip for October onwards.”

Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, said the market is on pause ahead of the Budget next month.

She continued: “The housing market is holding its breath ahead of Rachel Reeves’ budget bombshells. Households are counting every penny, and that caution is showing up in the data. 

"Spending and borrowing are inching forward, not accelerating, as people brace for what comes next. The numbers may look modest, but they speak volumes. Families are still in financial survival mode, not revival mode.”

Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, said he is seeing “cautious mood” everywhere.

He added: "The September figures paint a picture of a market that's treading water rather than making waves. Purchase approvals crept up by just 1,000 whilst remortgaging actually fell, suggesting buyers and homeowners alike are keeping their powder dry. 

"You're seeing this cautious mood everywhere: estate agents report viewing numbers are down, solicitors mention slower pipelines, and mortgage brokers describe clients scaling back their plans. The market isn't crashing; it's simply pausing. Homeowners are shelving capital-raising plans as disposable income gets squeezed. 

“Everyone's waiting to see what happens next with rates and policy changes. History suggests when this uncertainty clears, activity often bounces back sharply. Until then, expect more of this careful navigation rather than confident acceleration.”