Mortgage approvals for house purchases and remortgages have both risen.
Gross mortgage lending across the residential market saw a yearly increase of 3.7% in September, the UK Finance Household Finance Update has showed.
Mortgage approvals for house purchases were 13.5% higher whilst remortgage approvals rose by 23.4% since September 2018.
There were 85,880 mortgages approved by the main high street banks in September.
David Copland, director of mortgage services at TMA, said: “With a General Election looming, housing and homeownership will undoubtedly be high on the political agenda.
“Today’s figures show that despite this uncertainty, consumers still have an appetite to borrow, and lenders still have an appetite to lend.
“Advisers, too have a pivotal role in this process, ensuring thatborrowers looking to move orremortgagehave access to the best deals in the market.
“Listening to customer demand will be key for both lenders and advisersif today’s positive level of lending is to continue.
“With the sector committed to producing top quality solutions, consumersshould feel confident that their needs remain at the forefront of the industry’s mind – no matter what the coming months have in store.”
Approvals for other secured borrowing also saw a year-on-year increase of 8.5% according to UK Finance.
John Goodall, chief executive and co-founder of Landbay, said that the rise in mortgage lending is unsurprising.
Goodall added: “In many ways this uptick in mortgage lending doesn’t come as a surprise.
“Despite the continuing economic uncertainty, the truth is that demand remains strong with buyers and there is an increasing number of competitive mortgages out there for them to choose from.
“Similarly, it appears that some would-be buyers are getting tired of waiting for the Brexit dust to settle and have decided to make their move. Considering the current low interest rate environment, this could be a very wise decision in the medium term.
“To be clear, this increase in lending activity should be welcomed with open arms considering how crucial it is to maintaining the resilience of the UK’s residential property market, which is so critical to the wider UK economy.
“Looking forward, as we edge towards Christmas and a potential general election, it will be interesting to see whether other would-be buyers decide to strike – or choose to hold-off until things become clearer.”
Andrew Montlake, managing director of the Coreco, also commented on the latest data from UK Finance: “This latest data is yet more evidence that the mortgage and property markets are in relatively good health despite the chaotic political environment.
“Remortgages are thriving as people look to lock into the lowest rates possible to weather the potential economic storm ahead.
“House prices have become a lot more affordable for many and that’s a major driver of transaction levels.
“We’re living through unprecedented political times and yet many homeowners and would-be homeowners are displaying a deeply pragmatic approach to the property market.”
