A nine-year high in remortgaging hid a decline in house purchase mortgage approvals in October, Bank of England data shows.

House purchase mortgage approvals fell to 64,575 in October, down from 66,111 in September and below the previous six-month average of 66,676.

Overall mortgage approvals were pushed up by a boost in remortgaging to 51,593, the highest number since October 2008.

Commenting on the figures, John Phillips, group operations director for Just Mortgages and Spicerhaart, said: “As a Bank of England rate rise became more realistic, public perception increased and with it the need to ensure they had the best mortgage deal in place for the longer term.

“Although there has been an increase in first-time buyer activity, remortgage volumes are definitely a key component that is keeping the market at this level.

“The opportunities that remortgages will provide to brokers in the coming months cannot be overstated. The Budget announcements might have been good for first-time-buyers, but supply is still a big problem.

“Although the Government’s plans are admirable, we cannot build new houses overnight. Until more homes get into the supply chain there is little opportunity for many home owners to move up that chain.”