Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
The mortgage market is showing encouraging signs as approvals increased month-on-month.
The number of net mortgage approvals for house purchases rose from 62,500 in July to 64,900 in August, according to the latest Money and Credit report from the Bank of England.
This is the highest this figure has been since August 2022, when there were 72,000 approvals.
After falling for five consecutive months, the number of remortgage approvals (not including those who remortgage with their existing lender) also rose from 25,200 in July to 27,200 in August.
This increased activity in the mortgage market comes as many lenders have been reducing rates recently, both before and after the Bank of England cut the base rate to 5% on 1 August.
“The latest mortgage approval figures showcase some welcome growth across the board for house purchases and remortgages,” commented Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk.
Although she highlighted that lending activity usually slows in the winter months, she pointed out that “predictions for another cut to interest rates before the year is up means it would not be surprising for this to have a further impact on the number of approvals”.
Even though falling mortgage rates have been good news for first-time buyers, as well as those wanting to remortgage or move home, house prices remain high.
After they dropped slightly in the month to August, house prices saw a monthly increase of 0.7% in September to stand at £266,094, according to Nationwide BS (which uses data from its own mortgage lending).
And, with a year-on-year increase of 3.2%, house prices saw their fastest rate of annual growth since November 2022.
“Income growth has continued to outstrip house price growth in recent months while borrowing costs have edged lower amid expectations that the Bank of England will continue to lower interest rates in the coming quarters,” commented Robert Gardner, Nationwide's Chief Economist.
“These trends have helped to improve affordability for prospective buyers and underpinned a modest increase in activity and house prices, though both remain subdued by historic standards,” he explained.
See our mortgage charts to compare the latest mortgage rates.
Alternatively, our weekly mortgage roundup highlights the deals with the lowest rates, as well as some Moneyfacts Best Buy deals that may be worth considering.
Mortgage rates are still relatively high compared to their pre-2022 levels, but the recent rate cuts may have encouraged borrowers to put their mortgage plans into action.
However, it’s important to think carefully and consider all your options before choosing a mortgage deal.
For example, some borrowers may not want to lock in a long-term deal in case rates fall significantly and they end up paying more than they needed to.
On the other hand, others may prefer to lock in a five-year mortgage (or longer) so their payments are guaranteed and won’t be affected in case rates started to rise again.
Meanwhile, some borrowers, such as those coming to the end of their fixed deal, may choose to go onto their lender’s Standard Variable Rate (SVR) and wait for rates to fall further before locking into a new fixed-rate deal. However, this can be a risky option as you’re likely to pay significantly more on an SVR and there’s no guarantee that rates will continue to drop.
With so many factors to consider, it can be useful to discuss your options with a mortgage broker as they will be able to offer advice tailored to your individual situation.
MAB is the preferred mortgage broker of Moneyfactscompare.co.uk
Get friendly, expert advice free of charge as a visitor of Moneyfactscompare.co.uk
Mortgage Advice Bureau have 1,600 UK advisers with 200 awards between them.
Speak to an award-winning mortgage broker today.
Call 0808 149 9177 or request a callback
Mortgage Advice Bureau offers fee free mortgage advice for MoneyfactsCompare visitors that call on 0808 149 9177. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm excluding bank holidays. Calls may be recorded.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Each week the Moneyfactscompare.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
More good news for borrowers as lowest rates continue to fall.
First-time buyers can now borrow up to six times their annual income from Nationwide BS after the lender amended its Helping Hand mortgage products.
First-time buyers can now borrow up to six times their annual income from Nationwide BS.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Each week the Moneyfactscompare.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
More good news for borrowers as lowest rates continue to fall.
First-time buyers can now borrow up to six times their annual income from Nationwide BS after the lender amended its Helping Hand mortgage products.
First-time buyers can now borrow up to six times their annual income from Nationwide BS.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.