Mortgage Approvals Fall to 53,400, Lowest Since December 2023: What the Bank of England’s September Data Means for UK Buyers and Sellers (October 2026)

Fifty-three thousand, four hundred. That's how many mortgages were approved for house purchase in the UK in September 2026, the third straight monthly decline and the weakest figure since December 2023. On 29 October 2026, the Bank of England published its Money and Credit statistics, revealing that mortgage approvals are now at their lowest since December 2023, a trend that has implications for anyone buying, selling, or thinking about remortgaging right now. The data landed just one day after the Autumn Budget, adding fresh uncertainty to an already cautious housing market.

This article breaks down what the numbers mean, why remortgaging is surging even as purchase approvals fall, and what practical steps buyers, sellers, and homeowners should take next.

Key Takeaways

• Mortgage approvals for house purchase fell to 53,400 in September 2026, down from 54,800 in August, the lowest since December 2023, according to Bank of England data.
• Approvals are down roughly 19% year on year, marking a third consecutive monthly fall.
• Remortgage approvals jumped around 25%, from 34,000 to 42,600, as homeowners lock in rates rather than move house.
• Effective interest rates on new mortgages rose to 4.63%, while average two- and five-year fixed rates remain just under 6%, according to Moneyfacts.
• A cooling purchase market gives buyers more room to negotiate, and makes pre-offer surveys more valuable than ever.

Mortgage Approvals Lowest Since December 2023: The Numbers Explained

According to the Bank of England's Money and Credit release for September 2026, mortgage approvals for house purchase dropped from 54,800 in August to 53,400 in September. This is not a one-off dip. It is the third consecutive monthly fall, and it pushes approvals to their lowest level since December 2023, roughly 19% below where they stood a year earlier.

Gross secured lending came in at £24.2bn, slightly up from £23.7bn in August but still below the six-month average of £26.3bn and around 2% lower than September 2025. Net mortgage borrowing was £3.9bn, down from £4.2bn and also below the six-month average of £4.9bn.

John Phillips, chief executive of Just Mortgages and Spicerhaart, summed up the mood:

"A slowdown in approvals in September really typifies the challenges facing the market... we know the market is still mainly made up of those needing to make moves, rather than necessarily wanting to."

Richard Pinch, senior director at Broadstone, added a similarly sober assessment:

"The continued decline in mortgage approvals and borrowing points to a housing market coming under increasing pressure."

Why Purchase Approvals Are Falling While Remortgaging Is Booming

While purchase approvals fell, remortgage approvals to a different lender told the opposite story, rising from 34,000 in August to 42,600 in September, an increase of around 25%. This divergence is telling. Fewer people are choosing to move home, but many existing borrowers are actively shopping around to secure better deals as fixed-rate terms end.

The effective interest rate on newly drawn mortgages rose slightly to 4.63% from 4.60%, while the rate on the outstanding stock of mortgages increased to 4.03% from 4.00%, according to the Bank of England. Moneyfacts data shows average two- and five-year fixed rates remain just below 6%, keeping affordability tight for anyone taking out a new loan.

Put simply: households are less willing to take on new, larger mortgages to move, but very willing to refinance existing debt when their current deal expires. That is a rational response to a market where borrowing costs remain elevated and economic uncertainty, fresh off the Autumn Budget, is weighing on confidence.

What a Lower-Approvals Market Means for Buyers

A market where mortgage approvals are at their lowest since December 2023 is, in practical terms, a market with fewer competing buyers. That shifts leverage.

• More room to negotiate on price. Fewer approvals suggest fewer active buyers chasing each property, which can soften seller expectations.
• More time to do due diligence properly. With less competition, there is less pressure to skip a proper survey just to beat another bidder.
• Survey findings as a negotiating tool. A RICS Level 2 or Level 3 building survey that uncovers damp, roof issues, or structural movement gives buyers hard evidence to renegotiate the asking price or request repairs before completion.

In a slower market, sellers are often more receptive to renegotiation than they would be in a frenzied one. A detailed, independent survey report is the single most effective tool a buyer has to secure a fairer deal.

What This Means for Sellers

Sellers face a different calculus when approvals are this low. Buyer numbers are thinner, and affordability is squeezed by fixed rates sitting near 6%. That means:

• Realistic pricing matters more than ever. Overpricing in a cooling market risks a stale listing, which itself depresses buyer interest further.
• A pre-sale survey can prevent late-stage collapse. Commissioning an independent survey before listing allows sellers to fix issues upfront or price accordingly, rather than losing a buyer mid-chain when their own survey turns up problems.
• Transparency builds buyer confidence. In a market where buyers "need" rather than "want" to move, as Phillips notes, sellers who present a well-documented, surveyed property stand out.

Remortgagers and Home Improvers: Why a Building Survey Still Matters

The 25% jump in remortgage approvals signals that many homeowners are choosing to stay put and refinance rather than sell and move. For this growing group, a building survey is not just for buyers.

Before extending, converting a loft, or taking on a larger remortgage to fund renovations, a condition survey can reveal:

• Structural issues that could affect the viability or cost of planned works
• Damp, insulation, or drainage problems that should be addressed before extension work begins
• Whether the property's value truly supports additional borrowing

Extending rather than moving is often cheaper than a house move in today's market of near-6% fixed rates, but only if the underlying structure can support it. A survey protects that investment.

September 2026 Mortgage Market: A Snapshot

Source: Bank of England Money and Credit statistics, September 2026, as reported by Mortgage Solutions.

What This Means for You

If you are buying: use the quieter market to your advantage. Commission a RICS survey before you exchange, and use any findings to negotiate price or repairs.

If you are selling: price realistically from day one, and consider a pre-sale survey to avoid surprises that could derail a sale later.

If you are remortgaging or improving: get an independent condition report before committing extra borrowing to building work, so you know exactly what you are investing in.

Whatever your situation, speaking to a qualified, independent chartered surveyor before you commit to a transaction remains one of the most cost-effective decisions you can make in a market like this.

FAQ

Why are mortgage approvals at their lowest since December 2023?

According to the Bank of England, approvals fell for a third consecutive month in September 2026, down to 53,400, roughly 19% lower than a year earlier, amid elevated borrowing costs and subdued buyer confidence following the Autumn Budget.

Why are remortgage approvals rising while purchase approvals fall?

Many existing borrowers are reaching the end of fixed-rate deals and choosing to switch lender for a better rate rather than move home, pushing remortgage approvals up around 25% in September.

Are mortgage rates still rising?

The effective rate on newly drawn mortgages edged up to 4.63% in September, according to the Bank of England, while Moneyfacts reports average two- and five-year fixed rates remain just below 6%.

Is now a good time to buy with approvals so low?

A quieter market can favour buyers through less competition and more negotiating room, though affordability remains tight given current fixed rates.

Should I get a survey before remortgaging?

Yes. A building survey helps confirm your property can support planned works or additional borrowing, protecting your investment before you commit.

Conclusion

September's figures confirm that mortgage approvals are at their lowest since December 2023, with purchase activity cooling for a third straight month even as remortgaging surges. For buyers, this is a moment to negotiate from a position of strength. For sellers, realistic pricing and transparency are essential. For remortgagers and improvers, protecting your investment with proper due diligence matters more than ever. Whichever camp you're in, book an independent chartered surveyor through Survey Merchant to get clear, reliable answers before you make your next move.