Mortgage approvals soar in April

April’s rise in mortgage approvals shows buyers are back in the game, but are not throwing caution to the wind. First-time buyers are taking advantage of a more negotiable market, lenders are competing harder on affordability, and borrowers are finally accepting that waiting for perfect conditions is a losing strategy. This is not a boom, but it is a healthier, more functional mortgage market.

The increase in approvals in April feels like a mix of improving confidence, more competitive lenders, and buyers realising the market may finally offer a bit of breathing room again. We’re definitely seeing more first-time buyers returning. After the volatility of the last two years, many are treating the current market a bit more boldly. It's not perfect conditions, but probably safer to move now than wait forever. Lenders have also become more flexible, with improved affordability models and higher income multiples helping buyers access larger loans, particularly in London where house prices still behave as though they’ve never heard of inflation. The drop in borrowing after March isn’t too surprising either, as March was boosted by buyers rushing to complete before stamp duty changes. On the ground, the market feels busy but sensible. Buyers are active again, but far more cautious and financially disciplined than during the ultra-low-rate era.

One contributor to the rise in mortgage approvals was almost certainly the increased awareness among first-time buyers that current market conditions are a perfect opportunity to get onto the ladder. Yes, mortgage rates are higher than they were a few months ago before the war in the Middle East began but lenders are improving their affordability and aspiring buyers are in a position to make some punchy offers. First-time buyers are calculating that they can claw back on the asking price the extra money they will pay on a mortgage, and then some.

August was one of our best ever months so this reflects the data. There are a lot of mortgage maturities with some still to come off the low rates and there was a bit of purchase activity. The market has quietened now but buyers need to see the current climate as an opportunity to negotiate as the savings on the property price will usually outweigh the extra in monthly payments due to higher interest rates due to the Middle East fall out. This does appear to be calming so first-time buyers should be looking to buy and make the most of the current timing.

The rise in approvals in April is largely a confidence story. Buyers, particularly first‑timers are sensing that the window of opportunity is still open. House prices have softened in many areas, lenders have been competing harder on rates, and people who sat on their hands through last year’s volatility are now re‑entering the market. It’s not a surge, but it’s a clear sign that sentiment is improving.

First‑time buyers are definitely a big part of the movement. Many of them are taking advantage of a calmer market where they’re not having to bid against ten other buyers. They’re also adjusting to the ‘new normal’ for interest rates, once people accept that 1% mortgages aren’t coming back, they start making decisions again.”

We’re also seeing more activity from movers who delayed plans during the rate spikes. Some borrowers who secured lower‑rate offers earlier in the year are now pushing ahead before those offers expire, which has helped lift April’s numbers.

If proof were needed that the UK mortgage market is resilient, this is it. Demand for bricks and mortar continued despite all the geopolitical volatility and lenders are doing their level best to stimulate activity and the supply side.