According to Bank of England figures, mortgage approvals fell in November but remained above the monthly average seen across 2024.
A total of 65,700 mortgages were green-lit in November, which is around 2,400 lower than October but above the previous 12-month average of 60,400.
Remortgaging approvals (which only includes remortgages processed through a different lender) fell by 300 to 31,200 in November while remaining above the 12-month average of 30,000.
The Money and Credit report also states that the annual growth rate for consumer credit borrowing slowed to 6.6% in November, down from 7.3% the previous month. This figure includes borrowing through personal loans, credit cards and card dealership finance.
The annual growth rate for credit card borrowing fell from 9.4% in October to 8.0% in November. The figure for other forms of credit dropped from 6.3% to 5.9% over the same period.
There was a slight increase in household deposits with banks and building societies, rising from £18.8 billion in October to £19 billion in November, making it the highest figure recorded since December 2020 (£21.5 billion).
SPF Private Clients chief executive Mark Harris said: “Mortgage approvals for new purchases slipped, which comes as a surprise and suggests ups and downs for the market in coming months rather than a steady improvement.
“Remortgaging numbers dipped very slightly, but this could mean more borrowers stuck with their existing mortgage providers rather than switching to a new lender.
“The effective interest rate paid on new mortgages decreased again to 4.5% as lower pricing at the time is reflected in the official figures. With a number of lenders cutting rates this week, this may dip further in coming months if others follow suit.”
Propertymark chief executive Nathan Emerson added: “The impact of higher interest rates without doubt has had a profound impact across the housing market.
Consumers need to feel a degree of confidence within their financial position to approach the buying and selling process, and it is essential that aspects such as inflation are managed robustly to keep long-term stability across the economy, which is needed for a healthy and secure housing market.
“Propertymark is keen to see interest rates lowered further when conditions permit to help spur growth in 2025.”
Mark Hicks, head of active savings, Hargreaves Lansdown commented: “A post-Budget pause marked the start of a seasonal slowdown in savings.
“Savers had been squirreling away cash ahead of the Budget, and after the announcement didn’t hit quite as hard as they had feared, they took their foot off the savings accelerator.”