Gross mortgage borrowing was down 4% year-on-year in October, according to the latest figures from the British Bankers Association, which put mortgage borrowing at £12.2bn.
The trade association for the British banking sector found that house purchase approvals in October also fell year-on-year, down 10% on October 2015.
In the first 10 months of 2016 approvals were 4% lower than in the same period of 2015.
Year-on-year remortgage approvals didn’t see much change in October, but were 13% higher in the first 10 months of the year compared to the same period in 2015.
Andy Knee, chief executive of conveyancing service provider LMS, said:
“The EU referendum and resulting record-low rates are driving families to capitalise and reduce their monthly mortgage bills.
“In general, the UK housing market is well positioned for the challenges that 2017 poses. The latest figures from the Department for Communities and Local Government show a spike in new build dwelling starts and completions for England in the third quarter, in comparison to the previous quarter.
"The chancellor’s announcement of a Housing Infrastructure fund worth £2.3bn in yesterday’s (23 November) Autumn Statement is a sign of the government’s intent to tackle the housing supply issue, crucial for market stability, which will make the UK property market more favourable for first-time buyers and remortgagers alike.”
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