Mortgage approvals slip to 54,900 in August as the rate on new mortgages rises to 4.60%

Mortgage approvals for house purchases fell to 54,900 in August, down from 56,100 in July and below the previous six-month average of around 60,100, according to Bank of England figures published on 29 September. The effective rate paid on newly drawn mortgages rose to 4.60% from 4.45%, so the lender repricing of recent weeks is now showing up in what borrowers actually pay and in fewer purchase approvals. For buyers, higher monthly costs stretch budgets further; for sellers, fewer approved buyers in the pipeline this autumn argues for realistic pricing from the start. This is a gradual cooling rather than a collapse: net mortgage borrowing still edged up to £4.4bn in August from £4.1bn in July.