Mortgage approvals up in February
The latest mortgage approval data from the Bank of England show that: –
- Mortgage approvals on house purchases for February sat at 62,584 up (3.9%) from 60,246 seen in January.
- Approvals are down (-3.9%) when compared to the 65,114 seen in February 2025.
- This annual decline was expected due to wider market slowdown and economic uncertainty, however there is still optimism for a return to growth, especially if the Iran conflict is resolved and bank rate cuts materialise later in the year as a result of greater stability.
Richard Merrett, Managing Director of mortgage adviser, Alexander Hall, commented:
“The current picture remains encouraging, particularly when you compare current market conditions to a year ago. Rates are lower, affordability has improved, and the average buyer is now considerably better off when it comes to the cost of their mortgage repayments.”
Jonathan Samuels, CEO of specialist lender Octane Capital, commented:
“We’ve seen a strong start to the year where mortgage market activity is concerned, with approvals once again starting to climb and a stronger rate than anticipated.
This improving buyer sentiment is being driven by a mortgage landscape that is far more favourable for homebuyers than it was a year ago and this remains the case despite developments in the Middle East in recent weeks.
Whilst the Iran conflict has had an impact on mortgage sector confidence to an extent, it’s unlikely to make a lasting dent in domestic sentiment and, whilst we may see a momentary dip in approval activity in the next set of figures, the outlook for the year ahead remains wholly positive.
Nathan Emerson, CEO of Propertymark, comments:
“With today’s figures reflecting February’s activity, it’s encouraging to see sustained momentum across the mortgage market during this period. This suggests that improving affordability and greater lender confidence were beginning to translate into real buyer activity.
“However, the outlook is far from certain. Escalating geopolitical tensions are likely to feed through into inflationary pressures and base rate expectations, which could quickly dampen borrowing conditions and slow approval volumes in the months ahead.
“As a result, both buyers and sellers are navigating a more complex landscape, where financial due diligence and timing are becoming increasingly critical to decision-making.
“Nonetheless, the housing market remains a cornerstone of the UK economy, and a return to greater stability and confidence will be key to maintaining transactional momentum as the year progresses.”
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