UK Mortgage Approvals Fall to Lowest Since 2024

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%.