Copy article

Bank of England mortgage approvals

ended 29. July 2026

Net mortgage approvals (that is, approvals net of cancellations) for house purchases, which is an indicator of future borrowing, increased to 58,200 in June, from 56,600 in May — but below an average of around 61,400 over the previous 6-months, according to the Bank of England. Approvals for remortgaging (which only capture remortgaging with a different lender) also increased to 34,200 in June, from 33,800 in May. Meanwhile, net borrowing of mortgage debt by individuals increased to £7.7 billion in June, from £3.3 billion in May, above the previous 6-month average of £4.9 billion. The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages increased to 4.35% in June, from 4.22 in May. The rate on the outstanding stock of mortgages was 3.96% in June, up from 3.92% in May. Any thoughts on how demand for mortgages is holding up, ASAP please.

3 responses from the Newspage community

Copy all

Copy

Editor
Tracey Dixon
Buy-to-Let Mortgage Specialist & Owner at Pure Mortgage and Protection
These figures show that mortgage demand is holding up remarkably well despite ongoing affordability pressures. Buyers aren’t waiting for perfect conditions anymore – they’re adapting to the market that’s in front of them.

I’m seeing more clients accept that life doesn’t stop for interest rates. Whether it’s a growing family, a new job or a relationship change, people still need to move.

The market isn’t booming, but it’s proving far more resilient than many expected. If a mortgage is affordable today and suits a client’s long-term plans, waiting indefinitely for the ‘perfect’ rate can end up costing more than getting on with life.
Copy

Editor
Shaun Sturgess
Director at Sturgess Mortgage Solutions
Demand for mortgages started to recover in June from the uncertainty caused by the war in the Middle East during the three previous months. But just as some degree of normality was starting to return to the market, renewed tensions have seen rates increase again in recent weeks. This once again shows the need for borrowers to lock into rates at their earliest convenience just in case the market suddenly moves against them, as it has in July. Locking in protects you against rate rises and a good broker will switch you onto a lower rate if one becomes available.
Copy

Editor
Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
These figures look less like a housing market recovery and more like a patient whose condition has stopped deteriorating. Mortgage demand is holding up, but only just. Approvals ticked higher in June, yet they are still below the recent six-month average, which suggests buyers are edging back rather than flooding in. The jump in net borrowing is notable, but with newly drawn mortgage rates rising to 4.35%, affordability is still doing a lot of damage. The market needs a proper shot in the arm: lower borrowing costs, more confidence and greater certainty on household finances. For now, demand is resilient, but fragile. People still want to move, but many are doing the sums twice and deciding whether the leap is worth it.