UK mortgage approvals rise in June - BoE
By Michele Maatouk
Date: Tuesday 29 Jul 2025
(Sharecast News) - Mortgage approvals rose in June, according to the latest Money and Credit report released on Tuesday by the Bank of England.
Net mortgage approvals for house purchases ticked up to 64,200 from 63,300 in May. The figure for May was revised from 63,000.
Economists were expecting it to remain broadly unchanged.
Net borrowing of mortgage debt increased by £3.1bn to £5.3bn in June, compared to a £2.8bn increase of net borrowing to £2.2bn in May.
The effective interest rate - the actual interest paid - on newly-drawn mortgages fell for the fourth month in a row, to 4.34% in June from 4.47% in May.
Approvals for remortgaging increased by 200 to 41,800 in June. This marked the highest number of approvals for remortgaging since October 2022, when it was 50,000.
The data also showed that net borrowing of consumer credit by individuals rose to £1.4bn in June from £0.9bn the month before. This was driven up by net borrowing through credit cards, which ticked up to £0.7bn from £0.2bn, while borrowing through other forms of consumer credit was broadly unchanged at £0.7bn.
Households' deposits with banks and building societies rose by £7.8bn on the month in June, following an increase of £4.3bn in May from April. This was mainly driven by households depositing an additional £3.6bn into ISAs and £1.2bn into interest bearing sight accounts
Stephanie Daley, director of Partnerships at mortgage advisor Alexander Hall, said: "Mortgage market momentum remains robust, with mortgage approvals not only increasing for the second consecutive month, but also remaining above the 60,000 threshold since March of last year.
"This positive trend is expected to build throughout the rest of the year, with affordability improving thanks to a series of recent initiatives. The decision to make the Mortgage Guarantee Scheme permanent is a key step forward, giving lenders greater confidence to support buyers with smaller deposits. Additionally, recent regulatory changes to loan-to-income caps have provided more flexibility, particularly for smaller lenders and building societies.
"We've already seen significant movement from a number of major lenders in response to these changes. These adjustments are not only making mortgages more accessible but are also helping to enhance the overall affordability landscape for borrowers. As a result, buyers are now in a stronger position to secure more favourable terms, and with lenders continuing to adapt, we expect this momentum to continue."
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