Net borrowing of mortgage debt – which reflects completed house purchases and lags approvals – fell from £6.8bn to £4.4bn, however, the lowest since October 2025. The effective interest rate – the actual interest paid – on newly drawn mortgages increased to 4.08% from 4.03%.Mortgage approvals climbed to their highest level in 15 months in April, suggesting buyer demand remained resilient despite higher borrowing costs and ongoing economic uncertainty.
Latest Bank of England figures show lenders approved 65,945 mortgages during the month, up from 63,979 in March and the highest monthly total since January 2025. The figure was also well ahead of economists’ expectations of 62,000 approvals.
The data points to continued activity in the housing market even as rising energy prices and concerns over inflation, fuelled by the conflict between Iran and Israel and its impact on global markets, have dampened hopes of faster interest rate cuts.
Simon Gammon, managing partner, Knight Frank Finance, added: “Whether momentum slows meaningfully will depend on how long the conflict persists and whether domestic political developments place further upward pressure on borrowing costs. Lender margins remain extremely thin, leaving little room for manoeuvre should market volatility return or the conflict continue for longer than investors currently expect.”
Read the orginal article: https://propertyindustryeye.com/mortgage-approvals-rise-in-april-but/?utm_source=rss&utm_medium=rss&utm_campaign=mortgage-approvals-rise-in-april-but
