Mortgage approvals fell slightly in November as consumer borrowing rose the most in two years, a sign that people are charging the cost of Christmas to their credit cards.
The number of mortgages approved for home purchases fell to 64,500, down around 500 from October, according to figures from the Bank of England’s Money and Credit report for November. In contrast, remortgage approvals with another lender increased by 3,200 to 36,600.
Jason Tebb, Chairman of OnTheMarket, said: “Approvals fell only slightly in November, highlighting the overall resilience and determination of buyers and sellers to continue their pursuits. »
Simon Gammon, managing partner at Knight Frank Finance, added: “Given all the noise in the run-up to the Budget, it appears that many buyers have put their plans on hold until after Christmas. That said, mortgage rates continued to fall through December and anecdotal evidence from our brokers suggests that some of the pent-up demand is likely to be released as spring approaches. Lenders are starting the year with new targets and we expect the biggest lenders to be most aggressive in cutting rates during the first weeks of January.
Learn more: How to Deal with a Christmas Debt Hangover
Nathan Emerson, chief executive of property trade body Propertymark, said: “Throughout 2025, it has been encouraging to see lenders offering increasingly competitive mortgage products, particularly those aimed at first-time buyers, helping to support activity despite wider economic uncertainty. The base rate cut introduced before Christmas is likely to further boost confidence as we approach 2026, making borrowing more affordable and providing further encouragement buyers to take the next step.”
At the same time, credit card borrowing grew at its fastest annual pace in nearly two years. The Bank of England announced that annual growth in consumer credit rose from 7.5% in October to 8.1% in November. Credit card borrowing jumped 12.1%, up from 10.9%, marking the highest figure since January 2024, when it was 12.5%.
Simon Trevethick, head of communications at StepChange Debt Charity, said: “For many households, the increase in consumer borrowing in November may reflect the reality that everyday costs are becoming increasingly difficult to manage without relying on credit. »
“This increase could also indicate that people are borrowing more in the lead up to the festive season – our own survey found that 14 million people would struggle to afford Christmas. While some people will be able to repay any extra borrowing, others may carry their balances into the new year and beyond. No one should feel like they have to tackle a debt problem alone. Free, impartial debt advice is available.”
