Uncertainty fuels a drop in mortgage activity and a rise in savings and ISA deposits in October - BOE Money and Credit data
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
Mortgages
“Borrowers may well have felt indecisive over securing a mortgage during October, with net mortgage approvals falling for both house purchase and remortgaging. However, the slowdown of activity came at a time when many borrowers felt uncertain surrounding the outcome of the Budget, and now that it’s been revealed, activity could pick up as we edge closer to the year end.
“Lenders will have their own targets to hit and will no doubt be working hard to entice new business, which has been evident over the past month. During November, the Moneyfacts Average Mortgage Rate dropped below 5%, and remains below, great news for borrowers looking for a new deal. However, not every borrower will move lenders when they come to remortgage, but it is expected many will need to make a decision soon if they are coming offer a cheap fixed rate from five years ago. With this in mind, it is worth noting that the Bank of England approval data for remortgaging only captures those with a different lender. Now is a great time for anyone looking for a new deal to seek advice from a broker to assess the latest options.”
Savings
“Uncertainty continued to hit savers during October, with an additional £5.5bn deposited in interest bearing sight deposits, such as easy access accounts and current accounts. It is always wise to create an emergency buffer, but savers who by default use a current account to do so could be missing out on inflation-busting returns on a savings account. Not only this, but those who do open an easy access account with their high street bank could be earning a paltry rate, so it’s vital to shop around.
“As may be expected, savers ploughed more cash into ISAs during October, with £4.2bn deposited, up from £3.2bn in September. This means more than £30bn has been deposited in cash ISAs since the start of April 2025. Our own study showed that 44% of consumers kept their savings in a cash ISA, compared to just 23% in a stocks and shares ISA. The drive to get the UK investing will not happen overnight and it’s important savers feel comfortable with where they invest their cash. It is highly likely that more deposits will go into cash ISAs now that the annual limit will be cut to £12,000 from April 2027, with the £20,000 held for savers over the age of 65. However, it’s a shame this age wasn’t lower to take into consideration those who retire on their private pension.”
Uncertainty fuels a drop in mortgage activity and a rise in savings and ISA deposits in October - BOE Money and Credit data
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
Mortgages
“Borrowers may well have felt indecisive over securing a mortgage during October, with net mortgage approvals falling for both house purchase and remortgaging. However, the slowdown of activity came at a time when many borrowers felt uncertain surrounding the outcome of the Budget, and now that it’s been revealed, activity could pick up as we edge closer to the year end.
“Lenders will have their own targets to hit and will no doubt be working hard to entice new business, which has been evident over the past month. During November, the Moneyfacts Average Mortgage Rate dropped below 5%, and remains below, great news for borrowers looking for a new deal. However, not every borrower will move lenders when they come to remortgage, but it is expected many will need to make a decision soon if they are coming offer a cheap fixed rate from five years ago. With this in mind, it is worth noting that the Bank of England approval data for remortgaging only captures those with a different lender. Now is a great time for anyone looking for a new deal to seek advice from a broker to assess the latest options.”
Savings
“Uncertainty continued to hit savers during October, with an additional £5.5bn deposited in interest bearing sight deposits, such as easy access accounts and current accounts. It is always wise to create an emergency buffer, but savers who by default use a current account to do so could be missing out on inflation-busting returns on a savings account. Not only this, but those who do open an easy access account with their high street bank could be earning a paltry rate, so it’s vital to shop around.
“As may be expected, savers ploughed more cash into ISAs during October, with £4.2bn deposited, up from £3.2bn in September. This means more than £30bn has been deposited in cash ISAs since the start of April 2025. Our own study showed that 44% of consumers kept their savings in a cash ISA, compared to just 23% in a stocks and shares ISA. The drive to get the UK investing will not happen overnight and it’s important savers feel comfortable with where they invest their cash. It is highly likely that more deposits will go into cash ISAs now that the annual limit will be cut to £12,000 from April 2027, with the £20,000 held for savers over the age of 65. However, it’s a shame this age wasn’t lower to take into consideration those who retire on their private pension.”
