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Bank of England mortgage approvals: "mortgage activity remained surprisingly buoyant in December"

ended 30. January 2025

Net mortgage approvals for house purchases slightly increased to 66,500 in December, compared to a decrease of 2,300 in November, according to Bank of England data published today. Approvals for remortgaging decreased by 700 to 30,500, falling for a second consecutive month. Meanwhile, net borrowing of mortgage debt by individuals rose by £1.0 billion, to £3.6 billion in December. Newspage asked brokers for their views, below.

6 responses from the Newspage community

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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
Demand was unusually strong in December, stoked by the looming stamp duty deadline, so the slight uptick in mortgage approvals is no surprise. The phone rang all the way up to Christmas Eve and continued to ring between Christmas and the New Year as people sought mortgages to buy their homes and beat the clock. In January, the rate war many were expecting didn't materialise as markets decided they didn't like Labour's Budget one bit. Despite slightly higher rates, activity levels in January have been robust all the way up the property ladder as people are always keen to be in their new homes by the spring ready for the summer. Affordability, as ever, remains the key challenge for many prospective borrowers.
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Emma JonesVerified
Managing Director at Whenthebanksaysno.co.uk
December usually sees a drop off in demand as people focus on the festivities and office parties but last month was different. The rush to beat the stamp duty deadline was definitely a contributor to higher activity levels. January has been overshadowed by uncertainty in the markets and many lenders repricing up. Borrowers will be looking to the Bank of England to deliver rate cuts and potentially send mortgage rates down again. The economy is facing countless headwinds that will strengthen once many of the tax changes announced in the Budget go live.
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Andrew MontlakeVerified
CEO at Coreco
Many brokers reported they had a busy December and that appears to show through in this data. There's no doubt that the stamp duty deadline was driving a number of transactions. In January, there were expectations for a buoyant start to the year and for lenders to come out firing but the bond market sell-off injected some serious uncertainty into the market. It wasn't the start to 2025 that many were hoping for and the focus is now turning to the Bank of England's next Monetary Policy Commitee meeting on 6 February. The economy is in terrible shape and businesses and consumers alike need rate cuts to take off some of the pressure.
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Iain SwattonVerified
Director at Exemplar Financial Services
Despite concerns over the Budget and signs of a faltering economy, mortgage activity remained surprisingly buoyant in December, with strong enquiry levels continuing into 2025. While interest is high, we’ve yet to see this fully translate into business. Rate fluctuations persist and a lender price war has yet to emerge, but demand remains resilient. First-time buyers—unaffected by past ultra-low mortgage rates—have been a key driver, looking to secure a purchase before stamp duty rates rise. Whether this momentum continues beyond the increase remains to be seen.
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Aaron StruttVerified
Product and Communications Director at Trinity Financial
Most of the new enquiries we have been speaking to are first-time buyers who are keen to get on the property ladder this year. There are also lots of homeowners due to remortgage and they want the most competitively priced rates. Lots of people would like to buy before the stamp duty hike but they realise it is unlikely to happen now. Many potential buyers expect mortgage rates to come down at one point and think the Bank of England base rate will reduce. Some of the mortgage lenders have increased their rates recently but they have not gone up by much. We are expecting rates to get a bit cheaper over the coming months, although there are no guarantees. While there has not been a full-on rate war, First Direct still has a 4.23% two-year fix and a 4.13% five-year fix. Lenders are also providing up to six times salary mortgages, often to first-time buyers. There is competition between the banks and building societies to attract borrowers and keep the property market moving.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
The tide is turning. It’s really encouraging to see an increase during what is normally a quieter month. Stamp duty deadlines will be playing a part in this, but hopefully consumer confidence is returning and will continue to grow throughout 2025. December has set us up, but the market is still fragile and stability is needed to ensure growth this year.