British Mortgage Approvals Rise to 15-Month High, Bank of England Data Shows

June 3: The BoE said that 65,945 mortgages were approved in April, up from 63,979 in March, the highest point since January 2025. Economists polled by Reuters had expected 62,000 approvals during the month.

Consumer Credit Growth

Net unsecured lending to consumers rose by £1.859 billion ($2.50 billion), above economists' forecast of a £1.7 billion increase, though just below March's £1.904 billion rise.

Warning of Temporary Surge

Paul Dales, chief UK economist at Capital Economics, said it was likely that households had "pulled forward" their planned house purchases before mortgage rates rose more. "If so, mortgage approvals would soon fall back. That would certainly fit more comfortably with other indicators that show housing market sentiment has soured since the war triggered a jump in mortgage rates."

Housing Market Slowdown

Britain's housing market has slowed since the war in Iran started in late February. Weaker consumer sentiment and rising mortgage rates caused lenders like Nationwide Building Society to report the first monthly fall in house prices since December in May. Figures from the Royal Institution of Chartered Surveyors also showed drops in prices and buyer demand in April.

Net Mortgage Lending

Net monthly mortgage lending, which reflects completed house purchases and lags behind approvals, fell to a net £4.368 billion ($5.88 billion), the lowest since October 2025 and down from an increase of £6.833 billion in March.