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BoE Mortgage Approvals: "Demand started to drop off very slightly in February and March as the Stamp Duty deadline approached"

ended 31. March 2025

Net mortgage approvals for house purchases decreased by 600 to 65,500 in February, following a decrease of 400 in January, according to the Bank of England. Approvals for remortgaging decreased by 800 to 32,000, following an increase of 2,100 in the previous month. Meanwhile, net borrowing of mortgage debt by individuals decreased by £0.9 billion, to £3.3 billion in February, following an increase in net borrowing of £0.8 billion in January. Newspage asked brokers for their views, below.

7 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
We found February a busy month for mortgage enquiries in contrast to what the Bank of England stats suggest. Whilst buy-to-let continues to be subdued, first-time buyers and home movers remained keen to explore their options.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
February, like the broader first quarter, was strong across the board in our experience, with a clear push from buyers ahead of the stamp duty deadline and remortgage activity also buoyant. Confidence is rebuilding but sustained momentum depends on lenders and regulators continuing to evolve. If affordability rules keep shifting, as witnessed with Santander last week, we’ll see a much more dynamic market in the months ahead.
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Andrew Montlake
CEO at Coreco
Given the ongoing economic uncertainty, it's been a relatively busy start to 2025 on the mortgage front. First-time buyers were particularly active in their efforts to beat the stamp duty deadline at the start of the year as the savings for many were significant. Demand started to drop off very slightly in February and March as the Stamp Duty deadline approached but borrowing activity by no means dropped off a cliff. With Santander last week tweaking its affordability rules, enabling people to borrow more, more lenders are likely to follow in their footsteps, and if this happens we coud be in for a busier year than expected. A rate cut at the next Bank of England Monetary Policy Committee meeting in May would really ignite things but inflation will have to play ball. The National Insurance hikes due to come in in April could prove inflationary, which could throw a spanner in the works of rate cuts in the near term.
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Daniel Hobbs
CEO at New Leaf Distribution
The slight dip in approvals for house purchases was no surprise given that the window for beating the Stamp Duty deadline was starting to close. Overall, though, demand for bricks and mortar has been resilient in the first quarter. Many first-time buyers are clambering to escape a rental market where prices are extortionately high and this looks set to continue even beyond the Stamp Duty deadline.
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Riz Malik
Independent Financial Adviser at R3 Wealth
With Santander being the first to relax their affordability stress tests, it would not surprise me if others jumped on the bandwagon to beat the post Stamp Duty rush lull in the following weeks. For that reason, the second quarter of the year may be busier than expected. If the Bank of England cut rates in May, that will add further momentum to a market that refuses to die.
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Chris Barry
Director at Thomas Legal
Demand in the first quarter was high and we haven’t seen any signs of this momentum slowing. The spring market is traditionally a busy time for property purchases and this year looks to be no different. With the Stamp Duty cliff edge now behind us, all eyes are now focused on lower rates, a lower base rate and easing of lending policy.
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Mike Staton
Director at Staton Mortgages
Having spoken with many lenders in the first quarter, the focus for the majority seems to have been a push for first-time buyer mortgages. Santander's relaxing of affordability stress testing is a major move to get first-time buyers into play in a market that as been very anti-first-time buyer over the past five years. HSBC have also made a move to attract more first-time buyers with lower rates being introduced regularly. The second quarter of 2025 should be an exciting one as many lenders are starting to look comfortable, rate drops are expected to continue and there is an acceptance from buyers that the market is what it is. There has never been a good or bad time to buy a home and buyers are now realising that they need to accept market conditions as they are if they want to get onto, or move up, the property ladder.