Approvals for remortgaging have also seen an increase in the latest data
Mortgage approval rates have shown a rise for the first time in six months, according to new data released today (30th June) by the Bank of England.
Mortgage approvals for house purchases increased by 2,400 to 63,000 in May, while approvals for remortgaging also increased in May, by 6,200 to 41,500.
This was the first increase since December 2024 and the largest increase since February 2024, respectively.
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The data also revealed that net borrowing of mortgage debt by individuals increased by £2.8 billion to £2.1 billion in May.
Additionally, the annual growth rate for net mortgage lending increased slightly from 2.5% to 2.6% in May.
The news has been welcomed by Andrew Montlake, CEO at Coreco, who said: “There’s a flicker of life in the housing market’s pulse, with today’s Bank of England figures confirming the first rise in mortgage approvals for house purchases since last year.
“An uptick of 2,400 to 63,000 may not sound seismic, but in a market that’s been starved of good news, it’s a welcome breath of air.
“A lot of activity this year to date has been skewed by the stamp duty deadline in April, but that is now in the rear-view mirror and this points to growing confidence among borrowers and a realisation that the new norm is here to stay, at least for now.
“Demand for mortgages is still there, even though rates appear to have stabilised for now. We’ve seen a lot of lender innovation around affordability in recent months and that may be starting to feed through into this data.
“It’s a market delicately balanced on sentiment and affordability but if lenders continue to price competitively and inflation holds its ground, we may just see these green shoots become more sustainable.”
Emma Jones, Managing Director at Whenthebanksaysno.co.uk, also added: “Some good news today in the mortgage market, as May saw the first rise in mortgage approvals in 2025.
“The market has been blown off course slightly by the stamp duty holiday but it’s now looking like business as normal, at least more normal.
“All eyes are fixed on the next bank of England rate decision, which could be decisive in the demand for mortgages in the late summer and into autumn.”
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