The Bank of England has revealed that individuals borrowed £9.5 billion of mortgage debt, on net, in September from £4.4 billion in August.
This is the highest since June 2021 when net borrowing reached a record of £17.1 billion.
The central bank said that September’s increase was driven by borrowing ahead of the complete tapering off of lower Stamp Duty from October.
The net borrowing in September was £2.9 billion above the 12-month average to June 2021, when the full stamp duty holiday was in effect. Gross lending increased sharply to £30.7 billion in September, from £20.9 billion in August. Gross repayments also increased to £20.7 billion from £17.7 billion in August.
Approvals for house purchases, an indicator of future borrowing, fell to 72,600 in September, from 74,200 in August. This is the lowest since July 2020, but remains above pre-February 2020 levels.
Approvals for remortgaging (which only capture remortgaging with a different lender) rose slightly to 41,500 in September. This remains low compared to the months running up to February 2020, but is the highest since March 2020.
Toni Smith, chief operating officer at PRIMIS, said: “Today’s figures highlight the ongoing strength of our housing market. Whilst the September numbers were likely boosted by the extended Stamp Duty holiday, the drivers motivating people to buy or move home remain strong.
“However, as we start to see an increase in the cost of living and a potential rate rise looming, many households will find their finances squeezed. Within this context, the role brokers play in supporting their customers to access the best possible deal for their circumstances will be vital.
“With the last quarter of the year also set to bring a surge in remortgage activity, there is huge opportunity for those brokers proactively having conversations with their clients. As borrowers across the country look at their refinancing options, having the support of a broker who can guide them to a product that suits their specific needs, will be invaluable – and it will likely further strengthen their relationship with the broker for years to come.”