Mortgage borrowing rose to £4.5 million in November – though bigger spikes are likely to come in the months ahead, the Bank of England’s Money & Credit data shows.
This represents an increase from £4.2 billion in October and comes despite the destabalising effects of leadup to the Autumn Budget on November 26.
House purchase lending fell slightly but remortgaging rose, signposting that more people are looking to take advantage of lower mortgage rates.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “These figures are particularly interesting as they set the tone for housing market activity over the next few months at least and cover a period when worries about Budget tax changes were at their height.
“Although mortgage approvals dipped a little, buyers and sellers continued to demonstrate considerable resilience in view of the level of uncertainty, which bodes well for the market.
“Early signs this year have been encouraging although it is too early to say with any certainty whether the relief at lack of punitive tax measures will have a significant impact on decision-making.”
The average interest paid on new mortgages was 4.20%, an increase from 4.17% in October. Despite this rise, the general trend has been downwards for rates.
Jason Tebb, president of OnTheMarket, said: “With the rate on newly-drawn mortgages increasing for the first time since February 2025, affordability challenges continue.
“However, the Bank of England base rate cut in December, with more expected to come this year, should provide borrowers with further relief. With lenders already cutting their mortgage rates this month as they try to get off to a strong start, there is further good news for borrowers.”
Nathan Emerson, chief executive of Propertymark, said: “The base rate cut introduced before Christmas is likely to further boost confidence as we head into 2026, making borrowing more affordable and encouraging more buyers to take the next step.
“Should base rates ease further over the course of the year, this would provide additional momentum for mortgage lending.
“With already greater levels of consumer flexibility than only 12 months ago, we hope this trend continues, with future reports hopefully reflecting growing confidence for those looking to purchase their first home or move further up the housing ladder.”