UK Mortgage Approvals Slide to Lowest Since 2024

2026-01-30 09:44 By Joana Ferreira 1 min. read

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.



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