UK Mortgage Approvals Plunge to Over Two-Year Low

2026-06-29 09:00 By Joana Ferreira 1 min. read

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%.



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UK Mortgage Approvals Plunge to Over Two-Year Low
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%.
2026-06-29
UK Mortgage Approvals Rise to 15-Month High
Net mortgage approvals for house purchases in the UK increased to 65,900 in April 2026 from 64,000 in March, above market expectations of 61,700 and marking the highest level since January 2025. Approvals for remortgaging, which only capture remortgaging with a different lender, were broadly unchanged when compared to March. The ‘effective’ interest rate on newly drawn mortgages increased to 4.08% in April from 4.03% in the previous month. The rate on the outstanding stock of mortgages was 3.92% in April, down from 3.93% in March.
2026-06-02
UK Mortgage Approvals Rise More than Expected
Net mortgage approvals for house purchases in the UK rose to 63,531 in March 2026, up from a revised 62,708 in February and surpassing market expectations of 60,000. This marked the highest level since November 2025, exceeding the six-month average of around 63,200, supported by declining borrowing costs. Remortgaging approvals, which only account for switches to a different lender, also climbed to 51,300 in March from 41,200 in February. The effective interest rate on newly drawn mortgages fell to 4.03% in March from 4.10% in February, while the rate on the outstanding stock of mortgages edged down to 3.93% from 3.95%.
2026-05-01