UK Mortgage Approvals Rise in June Despite Higher Borrowing Costs

2026-07-29 08:46 By Joana Ferreira 1 min. read

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%.



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UK Mortgage Approvals Rise in June Despite Higher Borrowing Costs
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%.
2026-07-29
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.
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