Lenders completed £23.7bn in gross mortgage lending in November, a £600m fall on the month before, figures from the central bank revealed.
The Bank of England Money and Credit statistics showed that there was also a £3.1m decrease in gross mortgage repayments, totalling £19.4bn in November.
Meanwhile, the net borrowing of mortgage debt rose to £4.5bn, following a £1bn fall to £4.2bn the month before. The annual growth rate for net mortgage lending increased to 3.3% in November, compared to 3.2% in October, the highest rate of growth since January 2023, when this reached 3.4%.
Average mortgage rates rise
The average interest rate on newly drawn mortgages rose from 4.17% in October to 4.2% in November, the first increase seen since February 2025.
The average rate on outstanding mortgages was 3.9%, up from 3.89% in the previous month.
Aldermore Insights with Jon Cooper: Edition 5 – Feeling enthusiastic about next year’s run-of-the-mill market
Sponsored by Aldermore
Mortgage approvals for house purchase fell by 500 to 64,500 in November, while approvals for remortgaging rose notably by 3,200 to 36,600.
Affordability still a concern for many
Mark Harris, chief executive of SPF Private Clients, said: “With mortgage approvals dipping slightly in November, the underlying resilience of the housing market is in evidence despite many challenges facing it.”
Harris said with rates rising across new and existing mortgages, “affordability remains a concern for many”.
He added: “The good news for borrowers is that lenders are keen to lend and have the funds available to do so. Many of the big lenders have reduced their mortgage rates recently as they attempt to get off to a strong start this year, and we expect others to follow suit. Those who can’t compete on rate may look to improve criteria instead, which is also good news for borrowers.
“Remortgaging numbers rose, suggesting that borrowers coming off low rates are shopping around for the best rate possible rather than opting for the ease of sticking with their existing lender.”
Jason Tebb, president of OnTheMarket, said: “Intense speculation ahead of the Budget and the repercussions it might have for the housing market had an impact on approvals for house purchases – an indicator of future borrowing. Even so, approvals decreased only slightly in November, underlining the overall resilience and determination from buyers and sellers alike to proceed with their moves.
“With the rate on newly drawn mortgages increasing for the first time since February 2025, affordability challenges continue. However, the Bank of England base rate cut in December, with more expected to come this year, should provide borrowers with further relief. With lenders already cutting their mortgage rates this month as they try to get off to a strong start, there is further good news for borrowers.”
Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said the figures were interesting as they “set the tone for housing market activity over the next few months at least” and covered the period where there were worries about what tax changes would be announced in the Budget.
Leaf said: “Although mortgage approvals dipped a little, buyers and sellers continued to demonstrate considerable resilience in view of the level of uncertainty, which bodes well for the market.
“Early signs this year have been encouraging, although it is too early to say with any certainty whether the relief at [the] lack of punitive tax measures will have a significant impact on decision-making.”
