A lack of homes available on the market has been blamed for causing the number of mortgage approvals to fall to a four-month low in September.
The number of mortgages fell from 46,567 approved in August to 44,489 approved in September, according to the British Bankers’ Association (BBA). Although numbers fell, the month’s figure is still 14 per cent higher than it was for September 2014.
Experts identified an interest rate rise becoming less likely as a possible reason for the fall in mortgages.
“It may be that mortgage approvals had been lifted in recent months by a significant number of house buyers looking to move quickly to try and lock in a low mortgage interest rate before they start rising,” said Howard Archer, chief economist at IHS Global Insight.
“It is also possible that lower mortgage approvals in September is a sign that housing market activity is being constrained by a shortage of properties on the market.”
In August, gross mortgage borrowing was £12.1bn, a figure 17 per cent higher than August 2014.
Richard Woolhouse, chief economist at the BBA, said: “Remortgaging remains high as savvy customers secure attractive deals ahead of a possible rate rise.”
House prices have been rising more strongly lately, having slowed during this time last year, with a lack of new housing being attributed to these increases.
