Mortgage approvals in the United Kingdom surged to a 15-month high in April, according to the latest Money and Credit report from the Bank of England (BoE). The figures reveal that 65,945 home purchase mortgages were approved during the month, marking the highest level since January 2025.
Approvals Rise Despite Rate Hikes
The April total represents an increase from 63,979 approvals recorded in March and exceeded the six-month average of approximately 63,100. This uptick in mortgage activity occurred even as mortgage rates continued to climb in recent months, driven by persistent inflationary pressures that have led economists to anticipate a potential increase in interest rates later this year.
Remortgaging and Consumer Credit
Approvals for remortgaging with a different lender remained broadly unchanged compared to the previous month. Meanwhile, consumer credit borrowing held steady at around £1.9 billion for April, with net borrowing through credit cards rising to £0.8 billion from £0.7 billion in March.
Expert Analysis
Thomas Pugh, chief economist at RSM UK, commented: "Decent growth in consumer credit and another rise in mortgage approvals suggests households were unphased by the Iran war in April. However, some of this is due to people bringing forward activity to capture lower interest rates, and it is difficult to see how that positive momentum lasts."
Pugh added: "The recent drop in oil prices, even with yesterday's rebound, should help bring some normality back to the mortgage market, especially if the Bank of England takes a relatively measured view on the outlook for interest rates at its next meeting later this month. Indeed, financial markets are now pricing in just one rate hike, albeit with a risk of a second."
Matt Swannell, chief economic adviser to the Item Club, noted: "April's increase in mortgage activity came despite the sharp rise in mortgage rates in recent months, but it likely reflects Easter-related distortions that will soon unwind. Net mortgage lending fell to £4.4 billion in April, from £6.8 billion a month earlier."
