Demand for mortgages fell in the weeks before the Budget but there are hopes that activity will now return.
The latest data from the Bank of England shows the number of mortgage approvals fell from 65,647 in September to 65,018 in October.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Borrowers may well have felt indecisive over securing a mortgage during October, with net mortgage approvals falling for both house purchase and remortgaging. However, the slowdown of activity came at a time when many borrowers felt uncertain surrounding the outcome of the Budget, and now that it’s been revealed, activity could pick up as we edge closer to the year end.”
However, she highlights that lenders will have their own targets to hit and will no doubt be working hard to entice new business, which has been evident over the past month.
Richard Donnell, executive director at Zoopla added: “Demand for mortgages to buy homes fell in October, as uncertainty around property tax announcements in the Budget stalled activity in the housing market.
“Mortgage approvals are back to their 5 year average, which points to housing sales of 1.15m a year, and now that the threat of additional property taxes has been lifted from homes between £500,000 and £2m, we expect to see a rebound in demand as we enter the early months of 2026.”
Nathan Emerson, chief executive of Propertymark, said: “Speculation surrounding the Autumn Budget may have played a role in contributing towards a decrease in the number of mortgage approvals during this period.
“While it is understandable to see a lull regarding mortgage activity on the months leading up to the Chancellor making their fiscal plans known, it is now time to concentrate on ensuring the housing market is fully empowered for already anticipated population growth, via assembling a skilled workforce and supply chain to deliver on housing targets across each nation in what is already demanding timeframe to achieve.”
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