Latest Bank of England data has shown that mortgage approvals reached a 15-month high of 65,900 in April, a 3% increase from March.
Net borrowing of mortgage debt by individuals fell to £4.4 billion in April, from £6.8 billion in March, below the previous 6-month average of £5.1 billion. Approvals for remortgaging were broadly unchanged when compared to March.
Net borrowing of consumer credit by individuals remained unchanged at £1.9 billion in April, in line with the previous 6-month average of £1.9 billion. Within this, net borrowing through credit cards was £0.8 billion in April, up from £0.7 billion in March.
Borrowing through other forms of consumer credit (such as car dealership finance and personal loans) decreased to £1.0 billion in April, from £1.2 billion in March.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said “Approvals for remortgaging during April of 51,263 was slightly higher compared to March, of 51,247, and become the highest monthly figure since October 2022. The huge drive towards remortgage business is inevitable given many will be coming off cheap fixed rate mortgages this year. The other key driver would be the rush to secure a deal at a time when turmoil was rampant in the mortgage market, with rates increasing due to the unrest in the Middle East. It is also worth pointing out that the Bank of England approval data for remortgaging only captures those with a different lender.
“The number of approvals for house purchases rose from March to 65,945 from 63,979. Again, this change could well be a result of borrowers rushing, amid recent unrest in the mortgage market, which not only inflated mortgage rates, but also affected product choice. However, the intent to make ‘major purchases’ has dropped to its lowest level in over a year, according to GfK. Hopes that this sentiment will improve over the next few months would be incredibly optimistic, with the cost of living projected to rise, and the conflict in the Middle East now three months in.
“Indecisiveness could go against borrowers in the months ahead; mortgage rates have stopped rising drastically, yet there is no guarantee to expect any significant falls until future rate setting becomes clearer, so seeking advice is vital. Borrowers seeking a new deal are looking at repayments of £1,562 per month, based on a typical two-year fixed mortgage of 5.68% on a loan of £250,000, with a term of 25 years. This is a £1,000 difference over the course of 12 months, compared to the average rate of 5.12% back in June 2025.”
