UK mortgage approvals edge up in July - BoE
By Michele Maatouk
Date: Monday 01 Sep 2025
(Sharecast News) - UK mortgage approvals edged higher in July, according to data released on Monday by the Bank of England.
The latest monthly Money and Credit report showed that net mortgage approvals for house purchases ticked up by 800 to 65,400.
Net borrowing of mortgage debt fell by £0.9bn to £4.5bn in July, compared to a £3.2 billion increase of net borrowing to £5.4bn in June.
The 'effective' interest rate - the actual interest paid - on newly drawn mortgages fell for the fifth month in a row, to 4.28% in July from 4.34% the month before. However, the rate on the outstanding stock of mortgages remained at 3.88%.
The report also showed that net borrowing of consumer credit by individuals edged up to £1.6bn from £1.5bn. Within that, net borrowing through credit cards increased to £0.8bn in July from £0.7bn in June.
Net borrowing through other forms of consumer credit such as car dealership finance and personal loans rose to £0.9bn from £0.7bn.
Stephanie Daley, director of Partnerships at mortgage advisor Alexander Hall, said: "Another monthly increase in mortgage approvals, and the third in a row, provides further evidence that momentum in the market is continuing to build. Crucially, approvals have remained above the 60,000 mark since March of last year, which underlines the resilience of buyer demand even against a challenging backdrop.
"A number of recent policy changes are already helping to sustain this momentum. The decision to make the Mortgage Guarantee Scheme permanent has given lenders additional confidence to back buyers with smaller deposits, while adjustments to loan-to-income caps have provided more flexibility across the lending landscape.
"Looking ahead with affordability steadily improving, we expect to see activity continue to gather pace over the remainder of the year."
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