The latest Money and Credit Report from the Bank of England reveals net mortgage approvals for house purchase, an indicator of future borrowing, fell by 500 to 64,500 in November.
Net borrowing of mortgage debt by individuals increased to £4.5 billion, following a decrease of £1 billion to £4.2 billion in October. The annual growth rate for net mortgage lending increased to 3.3% in November, from 3.2% in the previous month, the highest since January 2023 (3.4%).
Approvals for remortgaging (which only capture remortgaging with a different lender) rose by 3,200 to 36,600 in November.
“Without seasonal adjustment, mortgage approvals were 7% lower than October 2025 and 15% lower than November 2024,” Anthony Codling, managing director of equity research at RBC Capital Markets pointed out.
“These figures demonstrate the negative impact of the November budget on the UK housing market. However, now the budget is done and dusted we expect to see a strong spring selling season in 2026 as mortgage rates continue to fall and as those who had moving plans on hold put their plans back into action.”
Propertymark CEO Nathan Emerson also believes the post-budget landscape looks more positive.
“The base rate cut introduced before Christmas is likely to further boost confidence as we head into 2026, making borrowing more affordable and encouraging more buyers to take the next step,” he said.
“Should base rates ease further over the course of the year, this would provide additional momentum for mortgage lending.
“With already greater levels of consumer flexibility than only twelve months ago, we hope this trend continues, with future reports hopefully reflecting growing confidence for those looking to purchase their first home or move further up the housing ladder.”
