Latest News Stream - Mortgage Approvals

Net mortgage approvals for UK house purchases, a key gauge of future borrowing, fell to 56,100 in July 2026 from a revised 58,200 in June, below market expectations of 59,400. Approvals dropped to their lowest level since January 2024 and remained well below the previous six-month average of around 60,800, pointing to continued pressure from elevated borrowing costs. Meanwhile, approvals for remortgaging with a different lender edged up to 34,500 from 34,100. The effective interest rate on newly drawn mortgages rose to 4.45% in July from 4.35% in June, while the rate on the outstanding mortgage stock increased slightly to 3.97% from 3.96%.

Net mortgage approvals for house purchases in the UK, a key indicator of future borrowing, rose to 58,200 in June 2026 from a revised 56,600 in May, exceeding market expectations of 57,100. Despite the increase, approvals remained near two-year lows and below the previous six-month average of around 61,400, reflecting the impact of elevated borrowing costs. Approvals for remortgaging with a different lender also edged higher to 34,200 from 33,800. Meanwhile, the effective interest rate on newly drawn mortgages climbed to 4.35% in June from 4.22% in May, its highest level in more than a year. The average rate on the outstanding stock of mortgages also increased, reaching a record high of 3.96%.

Net mortgage approvals for UK house purchases fell to 56,205 in May 2026, down from a revised 66,034 in April and below market expectations of 62,900. This marked the lowest level since December 2023 and well under the six-month average of 63,300, as rising mortgage rates and weakened consumer confidence, exacerbated by the Iran war, have dampened house prices and buyer demand. Remortgaging approvals also dropped sharply to 33,300 in May, from 51,200 in April. The effective interest rate on newly drawn mortgages rose to 4.22% in May, up from 4.08% in April, while the rate on outstanding mortgages remained steady at 3.92%.

Net mortgage approvals for house purchases in the UK, which is an indicator of future borrowing, increased to 62,600 in February 2026 from 60,200 in January, above market expectations of 61,300. Approvals for remortgaging, which only capture remortgaging with a different lender, also increased to 41,200 in February, from 38,500 in January. The ‘effective’ interest rate on newly drawn mortgages slightly increased, to 4.10% in February, from 4.09% in January. The rate on the outstanding stock of mortgages was 3.95% in February, up from 3.90% in January.

Net mortgage approvals for house purchases in the UK fell to 59,999 in January 2026, down from 61,007 in December and below market expectations of 62,000, marking the lowest level since January 2024. The decline highlights the broader cooling in the UK housing market, which was weighed down last year by the expiry of a temporary tax break on certain home purchases and subdued buyer demand ahead of the November annual budget. Remortgage approvals, covering refinancing with a different lender, also fell to 38,100 in January from 38,400 in December. The effective interest rate on newly drawn mortgages edged down to 4.09% from 4.15%, while the rate on the outstanding stock of mortgages slipped slightly to 3.90% from 3.92%.

Net mortgage approvals for house purchases in the UK fell to 61,013 in December 2025, down from a downwardly revised 64,072 in the previous month and well below market expectations of 64,800. This marked the lowest level since June 2024, underscoring the broader cooling in the UK housing market through 2025. Activity weakened after the expiry of a temporary tax break on certain home purchases, while buyer demand was further restrained in the run-up to Finance Minister Rachel Reeves’ annual Budget in November, as households delayed decisions amid concerns that higher-value properties could face increased taxation. Meanwhile, approvals for remortgaging, which only include refinancing with a different lender, rose by 1,600 to 38,400 in December. The effective interest rate on newly drawn mortgages edged lower to 4.15% in December, from 4.20% in November. Meanwhile, the rate on the outstanding stock of mortgages increased slightly to 3.92%, up from 3.90% the month before.

Net mortgage approvals for house purchase in the UK, which is an indicator of future borrowing, increased by 1,000, to 65,900 in September 2025, the highest in nine months and above market expectations of 64,000. Approvals for remortgaging, which only capture remortgaging with a different lender, decreased by 600, to 37,200 in September. The ‘effective’ interest rate on newly drawn mortgages decreased by 7 basis points to 4.19%, the lowest since January 2023 (3.88%), continuing the downward trend observed since March 2025. The rate on the outstanding stock of mortgages remained unchanged at 3.89%.

Net mortgage approvals for house purchases in the UK, which is an indicator of future borrowing, decreased by 500 to 64,700 in August 2025, above market expectations of 64,500. Approvals for remortgaging, which only capture remortgaging with a different lender, decreased by 900, to 37,900. The ‘effective’ interest rate on newly drawn mortgages decreased for the sixth consecutive month, to 4.26% in August from 4.28% in July. The rate on the outstanding stock of mortgages increased slightly to 3.89% from 3.88%.

Net mortgage approvals for house purchases in the United Kingdom, which is an indicator of future borrowing, decreased for the fourth consecutive month, with a fall of 3,100 to 60,500 in April 2025, below market expectations of 63,000. By contrast, approvals for remortgaging, which only capture remortgaging with a different lender, increased by 1,600 to 35,300 in April, following an increase of 1,000 in March. The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages slightly decreased, to 4.49% in April. However, the rate on the outstanding stock of mortgages increased to 3.86% from 3.84%.

Net mortgage approvals for house purchases in the United Kingdom, which is an indicator of future borrowing, decreased for the third consecutive month, with a fall of 800 to 64,300 in March 2025, below market expectations of 64,800. By contrast, approvals for remortgaging, which only capture remortgaging with a different lender, increased by 1,000 to 33,400 in March, following a decrease of 700 in February. The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages decreased by 3 basis points, to 4.50% in March. Similarly, the rate on the outstanding stock of mortgages was 3.84% in March, compared with 3.87% in February.

Net mortgage approvals for house purchases in the UK, which is an indicator of future borrowing, decreased by 600 to 65,500 in February 2025, below market expectations of 66,000 and following a decrease of 400 in January. Approvals for remortgaging, which only capture remortgaging with a different lender, decreased by 800 to 32,000 in February, following an increase of 2,100 in January. The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages increased by 2 basis points, to 4.53% in February. The rate on the outstanding stock of mortgages was 3.87% in February, up from 3.81% in January.