Home loan approvals edged up by 800 in July to 65,400, the latest Bank of England data shows.
However, remortgage approvals to a new lender fell by 2,700 in the same month to 38,900.
Mortgage borrowing by consumers also fell by £0.9bn to £4.5bn in July, compared to a £3.2bn rise to £5.4bn of net borrowing in June, according to the central bank’s July Money & Credit Report.
The data comes after the Bank cut the base rate by a quarter point to 4.25% last month, its lowest level since March 2023. The reduction is the third rate cut this year and the fifth since last August.
The report also comes after widespread reports last month that the Chancellor is considering raising a range of property taxes in the Budget, expected in November.
Phoebus Software chief sales and marketing Richard Pike says: “Today’s Money and Credit figures show a mixed picture for the mortgage market.
“While net mortgage borrowing fell back in July after a strong June, approvals for house purchases edged higher, suggesting that underlying demand remains resilient despite affordability pressures.
Pike adds: “The drop in remortgage approvals highlights that many borrowers are still holding off making decisions in the hope of securing a better deal as rates settle.
“With the Bank of England’s recent base rate cut yet to fully feed through, the coming months will be crucial in determining whether activity levels continue to build momentum.”
Propertymark chief executive Nathan Emerson points out: “Considering the many twists and turns within the wider economy currently, it’s extremely positive to see a further uplift in mortgage approvals.
“The resilience of the housing market is often a direct indicator of consumer confidence and affordability, and it has been reassuring to see forward momentum as the year has progressed.
Emerson adds: “Hopefully, now that the Bank of England has taken the call to cut the base rate by a further quarter per cent, we should see lenders bringing additional levels of competition to the marketplace.
“Those already on fixed-term mortgage products should already be feeling the combined benefit of three base rate cuts across the year.”
Zoopla executive director Richard Donnell says: “Mortgage lending for home purchase is up 3% on last year mirroring the steady increase in new sales being agreed, which have recovered over 2025 and lead mortgage approvals data.
“We expect a continued increase in demand for mortgages as sales continue to increase, but the drift higher in average mortgage rates and concerns over property taxes at the upper end of the market may reduce activity in the next one to two months”
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by finopulse.
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