Home mortgage approvals edged up by 800 in July to 65,400, the most recent Bank of England knowledge exhibits.
However, remortgage approvals to a brand new lender fell by 2,700 in the identical month to 38,900.
Mortgage borrowing by shoppers additionally fell by £0.9bn to £4.5bn in July, in comparison with a £3.2bn rise to £5.4bn of web borrowing in June, based on the central financial institution’s July Money & Credit Report.
The knowledge comes after the Bank minimize the bottom price by 1 / 4 level to 4.25% final month, its lowest stage since March 2023. The discount is the third price minimize this yr and the fifth since final August.
The report additionally comes after widespread stories final month that the Chancellor is contemplating elevating a spread of property taxes within the Budget, anticipated in November.
These would cowl stamp responsibility and council tax reforms, a so-called mansion tax for increased worth houses and the introduction of nationwide insurance coverage on rental earnings for landlords.
Phoebus Software chief gross sales and advertising and marketing Richard Pike says: “Today’s Money and Credit figures present a combined image for the mortgage market.
“While web mortgage borrowing fell again in July after a robust June, approvals for home purchases edged increased, suggesting that underlying demand stays resilient regardless of affordability pressures.
Pike provides: “The drop in remortgage approvals highlights that many debtors are nonetheless holding off making selections within the hope of securing a greater deal as charges settle.
“With the Bank of England’s latest base price minimize but to totally feed by, the approaching months can be essential in figuring out whether or not exercise ranges proceed to construct momentum.”
Propertymark chief govt Nathan Emerson factors out: “Considering the various twists and turns inside the wider economic system presently, it’s extraordinarily optimistic to see an additional uplift in mortgage approvals.
“The resilience of the housing market is usually a direct indicator of client confidence and affordability, and it has been reassuring to see ahead momentum because the yr has progressed.
Emerson provides: “Hopefully, now that the Bank of England has taken the decision to chop the bottom price by an additional quarter per cent, we should always see lenders bringing further ranges of competitors to {the marketplace}.
“Those already on fixed-term mortgage merchandise ought to already be feeling the mixed advantage of three base price cuts throughout the yr.”
Zoopla govt director Richard Donnell says: “Mortgage lending for dwelling buy is up 3% on final yr mirroring the regular enhance in new gross sales being agreed, which have recovered over 2025 and lead mortgage approvals knowledge.
“We count on a continued enhance in demand for mortgages as gross sales proceed to extend, however the drift increased in common mortgage charges and issues over property taxes on the higher finish of the market might scale back exercise within the subsequent one to 2 months”
