UK mortgage approvals hit their lowest level in September since January, according to figures from the Bank of England, as high interest rates continue to weigh on the housing market.
Net mortgage approvals for house purchases fell to 43,300 in September from 45,447 in August, the data showed, while approvals for remortgaging fell to 20,600 in September, the lowest level since January 1999.
Net borrowing of consumer credit by individuals amounted to £1.4 billion in September, down from £1.7 billion in the previous month.
The effective interest rate (the actual interest paid) on newly drawn mortgages saw a 19 basis point increase and now sits at 5.01%.
The report showed households withdrew £0.7 billion from banks and building societies in September, driven by net outflows from interest-bearing and non-interest bearing sight deposit accounts of £6.2 billion and £2.8 billion respectively.
Households flocked to into National Savings and Investment (NS&I) accounts which rose sharply to £7.7 billion in September, the highest since August 2020, following net deposits of £0.3 billion in August.