Verified facts
UK mortgage approvals for house purchases fell to 53,400 in September from 54,800 in August, according to Bank of England figures released on 29 October. The seasonally adjusted measure is net of cancellations and indicates future borrowing rather than completed property sales.
Approvals for remortgaging with a different lender increased from 34,000 to 42,600. This series excludes borrowers switching products with their existing lender.
Separately, the Bank's effective interest-rate table shows the rate on newly drawn mortgages rose from 4.60% in August to 4.63% in September. This measures interest actually paid on new business, rather than today's advertised mortgage offers. The effective rate on outstanding mortgages rose from 4.00% to 4.03%.
Apolifina analysis
For investors following housebuilders and lenders, purchase approvals provide one indication of the financing pipeline. They do not establish how many homes a particular builder will sell or the profit a bank will earn. Company order books, margins and credit losses still need to be examined separately. The increase in remortgage approvals alongside fewer purchase approvals also shows why a single combined mortgage headline can obscure different activities. Refinancing and financing a home purchase are not interchangeable measures of housing demand.
Uncertainty and risk
These observations relate to September, before the 28 October Budget. They cannot demonstrate a response to its announcements. One month's figures do not establish a trend and statistical estimates can be revised. Aggregate effective rates are not individual mortgage quotes. Information only, not personal mortgage or investment advice; investments can fall in value.
Primary sources
- Bank of England: Money and Credit, September 2026
- Bank of England: Effective interest rates, September 2026, Table A
Source released 29 October 2026. Published 29 October 2026.
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