BusinessEconomic report Affects United Kingdom

UK Mortgage Approvals Hit Thirty Two Month Low As Rates Rise

Published 1w ago · Latest report 1w ago

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UK mortgage approvals slump to a 32-month low as borrowing costs reach their highest level since late 2023.

UK home loan approvals dropped to a 32-month low in August as borrowing costs reached their highest level since late 2023. Lenders pulled over 1,000 sub-5% deals from the market while average five-year fixed mortgage rates climbed to 5.94%. The contraction in the housing finance sector follows economic pressures linked to the conflict involving Iran.

The figuresBank of England data shows 54,918 mortgages were approved for new home purchases in August.
The withdrawalLenders removed over 1,000 mortgage deals carrying interest rates below 5% from the market.

By the numbers

5.94%average five-year fixed mortgage interest rate

54,918mortgages approved for new home purchases in August

1,000sub-5% deals withdrawn by lenders

Timeline

Sep 29Bank of England data reveals UK mortgage approvals dropped to a 32-month low in August.
Oct 1Lenders withdraw over 1,000 sub-5% mortgage deals from the market as borrowing costs continue to climb.

Why it matters

Mortgage rates and home loan approvals directly affect household finances and the broader property market across the United Kingdom. Sudden shifts in borrowing costs can stall housing transactions and impact buyers planning long-term property investments.

What outlets agree on

UK mortgage approvals dropped to 54,918 in August, the lowest monthly total since December 2023, while average five-year fixed rates rose to 5.94%.

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