The Bank of England Money & Credit report for October has revealed that the number of loan approvals for house purchase was 69,630 in October, compared to the average of 68,099 over the previous six months.
This has risen from 59,423 in October 2014, and is also up on a monthly basis from 69,012 in September 2015.
In addition, the number of approvals for remortgaging was 39,629, compared to the average of 38,430 over the previous six months. The number of approvals for other purposes was 12,178, compared to the average of 11,297 over the previous six months.
Peter Rollings, CEO of Marsh & Parsons, said: “Lending has rebounded after September’s downward blip, and mortgage approvals have leaped an impressive 17% year-on-year. All the vitals are looking strong, and remortgaging and locking into long-term deals will still very much be the name of the game for many existing homeowners awaiting potential interest rate movement in 2016.
“These figures only look at October – and George Osborne’s package of housing announcements in the Autumn Statement last week will have keyed up a new wave of first-time buyers eager to get their foot in the door. We may also see a winter flurry of buy-to-let borrowing before April’s stamp duty shake up, as landlords seek to invest before the additional charge is levied on second homes.
“The big question as we enter the New Year is whether the supply of homes will match the increasing demand that’s clearly evident in the mortgage market.”