Mortgage approvals fell below the six-month average in July 2026

The Bank of England’s Money and Credit release, published on 1 September 2026, shows net approvals for house-purchase mortgages fell to 56,100 in July 2026, seasonally adjusted, from 58,200 in June. That was below the 60,800 average of the previous six months, pointing to softer buyer demand. Net mortgage borrowing also fell sharply, to £4.3 billion from £7.7 billion in June.

The primary source for this update is the Bank of England’s Money and Credit statistical release for July 2026, which tracks borrowing and deposit data for households and businesses across the UK.

What changed

House-purchase mortgage approvals fell by about 2,100 between June and July 2026, from 58,200 to 56,100, taking them below the 60,800 six-month average. Approvals for remortgaging rose to 34,500, from a revised 34,100 in June. Net mortgage borrowing was £4.3 billion in July, down from £7.7 billion and below the £5.3 billion six-month average.

Who it affects

Home buyers are affected directly: mortgage approvals are a leading indicator, and an approval today typically becomes a completed purchase one to three months later, so a below-average month points to softer activity ahead. Borrowers taking out new deals also face higher costs, as the effective rate on newly drawn mortgages rose to 4.45% in July from 4.35% in June, its highest in more than a year. Remortgagers saw approvals edge up, which can signal households locking in before rates rise further.

Why it matters

A single month is a snapshot, not a trend, but the July figures combine two signs of cooling: approvals fell below their recent average while the rate on new mortgages kept climbing. That combination matters because borrowing volumes measure how much demand is actually converting into homes, and rising effective rates affect the affordability of deals being agreed now. The figures should be read alongside house price indices and transaction data for the full picture.

Source: Bank of England - Money and Credit — July 2026 figures checked 1 September 2026