Mortgage approvals down 11% in May
The latest mortgage approval data from the Bank of England show that: –
- Mortgage approvals on house purchases for May sat at 56,205 down (-14.9%) from 66,034 seen in April.
- Approvals are down (-10.8%) when compared to the 62,980 seen in May 2025.
- This annual decline was expected due to wider political and economic uncertainty; however, there is still optimism for a return to growth, especially if bank rate cuts materialise in the coming months.
Property industry reaction
Marc von Grundherr, Director of Benham and Reeves, commented:
“A dip in mortgage approvals shouldn’t be mistaken for a loss of buyer confidence. Fluctuations are inevitable, particularly against a backdrop of ongoing political and economic uncertainty.
The reality is that today’s buyers are far more pragmatic and decisive than they were a year or two ago. Rather than waiting indefinitely for the perfect mortgage rate, many have accepted that the market has stabilised and are moving ahead with confidence. The need to move now outweighs the hope of marginally lower rates.
As long as lenders remain competitive and borrowing costs continue to ease gradually, we expect any slowdown in approvals to prove temporary, with buyer demand remaining resilient through the second half of the year.”
Verona Frankish, CEO of Yopa, commented:
“A decline in mortgage approvals is unlikely to dampen the wider recovery we’re seeing across the housing market. Monthly variation is expected and the housing market rarely moves in a straight line.
The bigger picture remains encouraging. We’ve seen demand strengthen steadily this year, supported by more competitive mortgage rates and a growing sense of stability. Buyers have become far more willing to press ahead with their plans, recognising that waiting for cheaper borrowing costs may no longer be worthwhile.
While approval numbers may ebb and flow, the underlying market remains resilient. With lenders continuing to compete for business and expectations of further monetary easing still in place, we’re confident buyer activity will remain healthy throughout the second half of the year.”
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