Mortgage approvals among prospective buyers hit their highest level since August 2022 last month thanks to a drop in borrowing costs.
According to the Bank of England, some 68,300 mortgages for house buying were approved in October, increasing by 2,200 month on month.
This coincided with a drop in the effective, or actual, interest rate paid on newly drawn mortgages by 15 basis points to 4.61% - its lowest since May 2023.
Net borrowing for mortgages climbed by £0.9 billion to £3.4 billion in the meantime, while overall consumer credit borrowing across the UK slipped from £1.2 billion to £1.1 billion.
“Buyers and sellers are now on tenterhooks to see when the next interest rate cut might materialise,” Bestinvest analyst Alice Haine said.
“Two quarter-point interest rate cuts have eased borrowing costs to some degree, but the chancellor’s spending, borrowing and tax plans are expected to prove inflationary, something that could slow the pace of further interest rate cuts.”