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The value of gross mortgage advances increased during the third quarter but future lending commitments have dropped, Bank of England data shows.
Figures from the Bank of England have revealed that the value of gross mortgage advances increased by 18.6% on a quarterly basis between July and September.
This was the first increase since the third quarter of 2022 but the figure remains 27.6% lower annually.
Meanwhile, the value of new mortgage commitments decreased by 16.5% from the previous quarter to £51.5bn, and was 41.4% lower than a year earlier.
Commenting on the data, Karen Noye of wealth manager Quilter, said: “Despite these scary figures house prices have yet to tumble and in fact have recently been rebounding.
“These green shoots may soon be killed off by a winter frost if rates increase again or if there is another economic shock but for now house prices are remaining resilient.
“One positive sign from the data is that the value of gross mortgage advances increased, however, this comes from a low base.
“What is more worrying is that the value of new mortgage commitments is 41.4% lower than a year earlier showing quite what an impact higher mortgage rates have had on people’s borrowing appetite with many potential buyers opting to sit on their hands during this unpredictable period.”
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