Home mortgage approvals edged up by 800 in July to 65,400, the most recent Bank of England knowledge reveals.
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, in response to the central financial institution’s July Money & Credit Report.
The knowledge comes after the Bank lower the bottom charge by 1 / 4 level to 4.25% final month, its lowest stage since March 2023. The discount is the third charge lower this 12 months and the fifth since final August.
The report additionally comes after widespread studies final month that the Chancellor is contemplating elevating a variety of property taxes in the Budget, anticipated in November.
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 higher, 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 in the hope of securing a greater deal as charges settle.
“With the Bank of England’s current base charge lower but to totally feed by means of, the approaching months will probably be essential in figuring out whether or not exercise ranges proceed to construct momentum.”
Propertymark chief government Nathan Emerson factors out: “Considering the numerous twists and turns inside the wider economic system presently, it’s extraordinarily constructive to see an additional uplift in mortgage approvals.
“The resilience of the housing market is commonly a direct indicator of shopper confidence and affordability, and it has been reassuring to see ahead momentum because the 12 months has progressed.
Emerson provides: “Hopefully, now that the Bank of England has taken the decision to chop the bottom charge 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 charge cuts throughout the 12 months.”
Zoopla government director Richard Donnell says: “Mortgage lending for house buy is up 3% on final 12 months mirroring the regular improve in new gross sales being agreed, which have recovered over 2025 and lead mortgage approvals knowledge.
“We count on a continued improve in demand for mortgages as gross sales proceed to extend, however the drift higher in common mortgage charges and considerations over property taxes on the higher finish of the market could cut back exercise in the subsequent one to 2 months”
