Mortgage approvals for home purchases in the UK surged to a four-month high in March, according to the latest Bank of England figures. The number of approvals reached 63,531, the highest level since 64,520 in November 2025, as reported in the Bank's Money and Credit report. This figure exceeded the monthly average of approximately 63,200 approvals recorded over the previous six months.
Remortgaging Activity Also Rises
Approvals for remortgaging with a different lender also saw a significant increase, climbing to 51,300 in March from 41,200 in February. This uptick suggests that homeowners are actively seeking to secure lower interest rates amid fluctuating market conditions.
House Prices Reach New Record High
The release of these figures coincided with data from Nationwide Building Society, which revealed that average house prices rose by 3.0% annually in April, accelerating from 2.2% growth in March. On a monthly basis, property values increased by 0.4%, pushing the typical UK house price to £278,880—a new record high in cash terms.
Industry Experts Weigh In
Dan Hill, a research analyst at Savills, commented: "Much of this data reflects buyers and homeowners acting with urgency to secure a lower rate." Karim Haji, global and UK head of financial services at KPMG, noted: "The uptick in approvals for house purchases and remortgaging is surprising given the surge in rates during March. This may point to some resilience in the market, but overall affordability remains under pressure." Jason Tebb, president of OnTheMarket, added: "Our own property sentiment index suggests resilience and optimism among buyers and sellers. Even against a backdrop of ongoing political and economic turbulence, attitudes towards affordability, property values and moving home remain remarkably consistent."
Consumer Credit Growth Accelerates
The Bank of England report also highlighted that the annual growth rate for all consumer credit accelerated to 8.9% in March, up from 8.6% in February. Within this, credit card borrowing grew at an annual rate of 12.3%, compared to 12.1% the previous month.
Household Deposits and Business Borrowing
Households deposited £5.5 billion with banks and building societies in March, following net deposits of £6.2 billion in February. This was partly driven by an additional £4.4 billion flowing into ISAs ahead of the end of the tax year. Meanwhile, UK non-financial businesses borrowed £7.0 billion in loans from banks and building societies (including overdrafts) in March, up from £4.2 billion in February.
